SpiceJet, Jet Airways jump on aviation fuel price cut

Shares of Spicejet and Jet Airways rose by up to 7% after jet fuel (ATF) price was cut by a steep 11.3%.

SpiceJet's scrip gained 6.75% to Rs 23.70 at the BSE.

Similarly, Jet Airways surged 5.58% to Rs 543.50 -- its 52-week high .

ATF price was yesterday cut by a steep 11.3% and now costs less than diesel.

Also Read: Jet fuel price cut by 11.3%, now costs less than diesel, petrol

A price cut in aviation turbine fuel (ATF), or jet fuel, by 11.27% or Rs 5,909.9 per kilolitre to Rs 46,513.02 per kl in Delhi was announced by oil companies yesterday.

Also Read: Airlines cut fares as jet fuel prices fall steeply

The reduction, which followed possibly the steepest ever cut of Rs 7,520.52 per kl or 12.5% effected from January 1, has led to ATF becoming cheaper than even diesel.

Jet fuel constitutes over 40% of an airline's operating costs and the price cut will ease the financial burden of cash-strapped carriers.