Aviation shares Jet Airways and SpiceJet have fallen more than 4% each after the state-owned oil marketing companies hiked jet fuel price by 7.6% from Friday midnight, due to firm international oil prices and weakening of rupee against dollar.
“The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs. 5,146.16 per kilolitre (kl), or 7.6%, to Rs. 72,281.92 per kl with effect from Friday tonight,” Indian Oil Corp, the nation's largest oil firm, said.
Jet fuel constitutes over 40% of an airline's operating costs and the increase in prices will put fresh burden on the cash-strapped airlines.
Among the individual stocks,Jet Airways has dipped 4.5% at Rs 338 and SpiceJet by 4.7% at Rs 30.15 on the Bombay Stock Exchange at 1453 hours.
