New Delhi: Shares in domestic carriers traded lower Thursday on the back of a hike in Jet fuel prices. The price of aviation turbine fuel (ATF) or jet fuel was hiked by over 3.2 per cent, the third straight increase since July, adding to the cost burden of cash-strapped airlines.
Shares in Kingfisher Airlines fell most. At 11.26 a.m., they traded nearly 2 per cent lower at Rs 9.29. Jet Airways was down 0.2 per cent at Rs 394.70, while SpiceJet recovered and traded 0.4 per cent higher at Rs 35.70.
The rate hike comes on back of a steep 4.5 per cent increase in rates effected from August 1 and has wiped off all of the reduction in prices done in May and June.
Jet fuel, which had hit an all-time high peak of Rs 71,028.26 per kl in August 2008, shortly after international oil rates touched a record $147 per barrel, had fallen to eight-month low of Rs 61,169.08 per kl in early July.
Jet fuel constitutes over 40 per cent of an airline's operating costs and the increase in prices will put fresh burden on the cash-strapped airlines.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.
(With inputs from PTI)
Shares in Kingfisher Airlines fell most. At 11.26 a.m., they traded nearly 2 per cent lower at Rs 9.29. Jet Airways was down 0.2 per cent at Rs 394.70, while SpiceJet recovered and traded 0.4 per cent higher at Rs 35.70.
The rate hike comes on back of a steep 4.5 per cent increase in rates effected from August 1 and has wiped off all of the reduction in prices done in May and June.
Jet fuel, which had hit an all-time high peak of Rs 71,028.26 per kl in August 2008, shortly after international oil rates touched a record $147 per barrel, had fallen to eight-month low of Rs 61,169.08 per kl in early July.
Jet fuel constitutes over 40 per cent of an airline's operating costs and the increase in prices will put fresh burden on the cash-strapped airlines.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.
(With inputs from PTI)
