Aviation stocks soared by up to 8.5 per cent today as state-owned oil companies cut jet fuel prices by 2 per cent.
Airline scrips witnessed impressive buying despite weak markets,with the BSE 30-scrip benchmark Sensex trading 43.06 points down at 16,175.47 at 1100 hrs.
Shares of Kingfisher surged 8.57 per cent to Rs 11.40 on the BSE,while Spicejet gained 4.26 per cent to Rs 29.35. Similarly,Jet Airways climbed 2.82 per cent to Rs 323.85. The stocks rallied following the price of aviation turbine fuel (ATF),or jet fuel,in Delhi was reduced by Rs 1,376.81 per kl,or 2 per cent,to Rs 65,670.14 per kl. Jet fuel constitutes over 40 per cent of an airline’s operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.