Jet Airways, InterGlobe slip as ATF price hiked by 9.2%

Moneycontrol Bureau Shares of airline companies Jet Airways and InterGlobe Aviation were under pressure as government has decided to increase aviation turbine fuel (ATF) steeply by 9.2 percent to Rs 46,729.48/kl. Low fuel cost and expenses were aiding business of aviation companies. In January-March quarter of FY16, Jet Airways fuel expenses fell 25 percent at Rs 999 crore against Rs 1334 crore in year-ago period. It turned profitable in Q4 aided by low fuel costs. The airline company's net profit zoomed to Rs 397 crore in fourth quarter of FY16 from a loss of Rs 1729 crore in corresponding quarter last fiscal. Its total income, in Q4, rose 3.6 percent at Rs 5245.3 crore compared to Rs 5064 crore year-on-year. Other income in the period was at Rs 206 crore versus Rs 225 crore (YoY).Meanwhile, petrol price was hiked by Rs 2.58 a litre and diesel by Rs 2.26 per litre, the second increase in rates this month. Prices were last hiked on May 17.At 09:51 hrs Interglobe Aviation was quoting at Rs 1,040, down Rs 20.75, or 1.96 percent, Jet Airways was quoting at Rs 578.25, down Rs 9.80, or 1.67 percent while SpiceJet was quoting at Rs 68.50, up Rs 0.25, or 0.37 percent on the BSE. Posted by Nasrin Sultana