SpiceJet, IndiGo, Jet Airways drop up to 6%
Published On: Thursday, June 16, 2022 | By: Team KnowMyStock
Shares of aviation companies were under pressure as InterGlobe Aviation, which operates IndiGo airlines, SpiceJet, and Jetairways slipped up to 6.5 percent on the BSE in Thursday’s intra-day trade amid concerns of weak earnings due to rising fuel prices and falling rupee against the dollar. After the recent hike, jet fuel prices have reached an all-time high. For domestic airlines, ATF cost Rs 1,41,232.87 per kl in Delhi; Rs 1,46,322.23 per kl in Kolkata; Rs 1,40,092.74 per kl in Mumbai; and Rs 1,46,215.85 per kl in Chennai.Earlier, in May, ATF prices rose five percent to Rs 1.23 lakh per kilolitre in the national capital. The airline's CMD Ajay Singh said that aviation turbine fuel prices have gone up by more than 120 percent since June 2021, while adding this increase in ATF is sustainable for airlines, and central and state governments need to take action to reduce taxes.
"We have in the last few months tried to absorb as much burden of this fuel price rise, which constitutes more than 50% of our operational cost, as we could.
"The weakening of the Indian rupee against the US dollar further significantly impacts airlines as our substantial cost is either dollar-denominated or pegged to the dollar.
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