Moneycontrol Be a Pro
Get App
Last Updated : Sep 01, 2016 11:46 AM IST | Source: Moneycontrol.com

Jet, InterGlobe, Spice up 1-3% on aviation fuel price cut

Earlier in August, ATF prices were reduced by 4.2 percent. It will impact all aviation companies positively as ATF forms 40 percent of operating costs. This follows five ATF price hikes till July. ATF price was hiked by 5.5 percent in July for the fifth month in a row.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Moneycontrol Bureau


Shares of airline companies rallied on aviation fuel price cut. Shares of InterGlobe, Jet Airways and SpiceJet were up 1-3 percent intraday on Thursday as aviation turbine fuel (ATF) price was decreased by 3.8 percent to Rs 45411/kl. This is second consecutive ATF price cut after August.


Earlier in August, ATF prices were reduced by 4.2 percent. It will impact all aviation companies positively as ATF forms 40 percent of operating costs.

This follows five ATF price hikes till July. ATF price was hiked by 5.5 percent in July for the fifth month in a row. In the five increases, ATF rates had gone up by 25 percent, or Rs 9985.87, per kl since March.

Close

ATF rates vary at different airports because of differential local sales tax or value-added tax (VAT).


Meanwhile, in August-end the government had notified that excise duty of 2 percent for jet fuel purchased from airports that come under the regional connectivity scheme (RCS).


The Central Board of Excise and Customs (CBEC) had said that ATF drawn by operators or cargo operators from RCS airports for a period of three years


At 09:33 hrs Jet Airways was at Rs 547.95, up Rs 8.40, or 1.56 percent, SpiceJet was at Rs 60.25, up Rs 1.30, or 2.21 percent and Interglobe Aviation was at Rs 890.75, up Rs 9.70, or 1.10 percent on the BSE.

Posted by Nasrin Sultana
Follow @NasrinzStory



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 1, 2016 10:01 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant