Aviation stocks a mixed bag despite jet fuel price hike
Jet Airways shares are trading five per cent up, while Spicejet is up 0.65 per cent. InterGlobe Aviation, however, is down on Tuesday.
The stocks of Jet Aiways and Spicejet are flying high after state-run oil companies making significant hikes in the price of aviation turbine fuel (ATF) or jet fuel. Shares of Interglobe Aviation, the parent company of IndiGo, however, were not in a good position and were trading 1.53 per cent down.
Oil companies made a second straight upward revision in ATF prices.
The new rates took effect on Tuesday.
Post hike, the ATF rate in New Delhi surged by Rs 7,728 per kilolitre to Rs 98,508.26 per kilolitre.
In Mumbai, the price jumped from Rs 84,854.74 per kilolitre to Rs 92,124.13 per kilolitre.
New changes in prices can make air tickets more expensive.
With the new ATF prices coming into effect, Zee Biz puts the spotlight on prominent aviation stocks.
Jet Airways
The new ATF prices seem to have had no impact on Jet Airways share prices as they are soaring 5 per cent to Rs 53.34.
The shares are rising sharply two days after the DGCA extended the airline's air operator certificate till September 3 to complete the process of insolvency.
An AOC is a prerequisite certificate for an airline to start commercial flights.
The decision to extend also signifies the aviation regulator's confidence in Jet Airways' revival.
The last five sessions have bode well for the airline as its share rose 21.50 per cent, while its rise in the last month was 13.03.
In comparison, Nifty 50, the benchmark index, slipped 0.15 per cent in the last five sessions, while it rose 2.08 per cent in the last one month.
Spicejet
The airline's share price also made upward moves as it jumped 0.65 per cent to Rs 29.44 on Tuesday.
It's a respite for the company as its shares were down 3.19 per cent in the last five sessions.
The shares jumped despite the ATF price hike, and an arbitral tribunal's order directing the airline to refund over Rs 270 crore to Sun Group promoter Kalanithi Maran in an old legal case.
InteGlobe Aviation
Just a day before, the Centre informed that the aviation body had given its nod to IndiGo to purchase 500 planes from Airbus.
The decision will surely help the airline spread its wings, but it had no impact on its share price on Tuesday.
The share price was trading down 1.53 per cent to Rs 2,554.35.
It has fallen 1.41 per cent in the last five sessions while 3.08 per cent in the last one month.
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