Aviation stocks — IndiGo and SpiceJet — moved higher on Monday even as the price of aviation turbine fuel (ATF) was increased by five percent to a record high of Rs 1.23 lakh per kilolitre in the national capital.
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At 2:41 pm, the share price of Interglobe Aviation — the company that owns and runs India's largest airline by fleet and domestic market share, IndiGo — traded over two percent higher at Rs 1,659 apiece. The day's high for the aviation stock came in at Rs 1,666 apiece.
SpiceJet shares were up 1.5 percent at Rs 48.8, having risen to as high as Rs 49 apiece during the session.
The price of aviation turbine fuel — or jet fuel — has been moving higher since the beginning of 2022, to Rs 1.23 lakh per kilolitre from Rs 72,062 per kilolitre in January.
The latest revision in the price of jet fuel is the tenth upwards increase in of the year so far. It has been increased every fortnight since January 2022.
The fuel rate has been raised by a cumulative 61.7 percent during this period.
In Mumbai, ATF now costs Rs 1,21,847.11 per kilolitre, at Rs 1,27,854.6 per kilolitre in Kolkata, and at Rs 1,27,286.13 per kilolitre in Chennai.
Jet fuel makes up for more than 40 percent of the running cost of an airline.
IndiGo will declare its financial results for the January-March period on Wednesday. The upcoming quarterly earnings will be the first since the airline surprised the Street with its October-December performance as its profit came followed seven straight quarters of losses.