IndiGo shares rally over 2%, SpiceJet shares trade higher as jet fuel price slashed 7%; all you need to know

The price of aviation turbine fuel (ATF), or jet fuel, was slashed by 7.3% as state-owned oil marketing companies implemented their monthly price revisions aligned with global fuel benchmarks.

ATF price in Delhi was cut by ₹7,353.75 per kilolitre, or 7.3%, to ₹92,323.02 per kl, according to state-owned fuel retailers.

The reduction comes after three rounds of monthly price hikes. The rate was last raised by ₹5,133.75 per kl, or 5.4%, on December 1. Prior to that, prices had risen by about 1% on November 1 and by 3.3% on October 1.

The cut announced Thursday neutralises more than two-thirds of the price increase that happened since October 1. The latest reduction is expected to ease pressure on airlines, for which fuel accounts for nearly 40% of operating costs.

In Mumbai, the ATF price was revised to ₹86,352.19 per kl, while prices in Chennai and Kolkata were cut to ₹95,770 and ₹95,378.02 per kl, respectively.

Fuel prices vary across cities due to local taxes.

IndiGo share price

Shares of InterGlobe Aviation surged as much as 2.2% to an intraday high of ₹5,175 apiece on the NSE. At 1:40 PM, the stock was trading at ₹5,108.50 apiece on the National Stock Exchange, gaining 1.15%.

IndiGo shares have declined 12% over the past month and more than 14% in the last six months. However, on a year-on-year basis, the stock is still up 11%.

The company’s market capitalisation stands at ₹1.97 lakh crore.

The airline this week has received two GST penalty notices. One GST penalty notice worth ₹45,826,169.80 has been issued for financial year 2018-19 (FY19) to FY23. Another one is worth ₹14,59,527 for the financial year 2021-22.

The budget airline, however, said that there is no significant impact on financials, operations or other activities of the company.

SpiceJet share price

Shares of SpiceJet have jumped 1.5% to an intraday high of ₹30.18 apiece. At 1:45 PM, the stock was trading at ₹29.83 per share on the Bombay Stock Exchange, surging 0.3%.

In the last five trading sessions, SpiceJet shares have fallen more than 4%, while in a month’s time, they have lost 9%. For the six-month period, the stock has declined 22%, while on a year-on-year basis, it has tumbled 47%.

Its market capitalisation stands at ₹4,216.16 crore.