Airline stocks surged on Friday in an otherwise flat market on a steep cut in aviation fuel prices. Indian Oil Corporation has slashed aviation turbine fuel (ATF) prices by 10 per cent, following a sharp fall in global oil prices. For latest news on Business, like us on Facebook and follow us on Twitter.
After the steep cut, ATF prices in Delhi currently stand at Rs 39,892 per kiloliter, down from nearly 10 per cent from Rs 44,320 in December.
Fuel contributes around 40-50 per cent of the operating cost of airline companies in India.
Shares of InterGlobe Aviation (which operates budget airline IndiGo) jumped 12 per cent, SpiceJet 12 per cent and Jet Airways 11 per cent.
Jet Airways shares also got a boost after their inclusion in the future and option (F&O) segment from today. Jet Airways shares had gained nearly 7 per cent on Thursday.
Global oil prices are currently near 11-year lows on concerns over supply glut and weak global growth.