Today;the Shares of SpiceJet, Jet Airways and InterGlobe ,the airlines companies rallied on aviation fuel rate cut upto 1-3 % intraday, because aviation turbine fuel (ATF) price was reduced by 3.8 %to Rs 45411/kl.
On the starting days of August,ATF rates were lower down by 4.2 %.It will impact all aviation companies positively as ATF forms 40% of operating prices.
This follows five ATF price hikes till July. ATF price was hiked by 5.5 percent in July for the fifth month in a row. In the five increases, ATF rates had gone up by 25 percent, or Rs 9985.87, per kl since March.
However, in August-end the government had notified that excise duty of 2 percent for jet fuel purchased from airports that come under the regional connectivity scheme (RCS).
The Central Board of Excise and Customs said that, “ATF drawn by operators or cargo operators from RCS airports for a period of three years”
At 09:33 hrs Jet Airways was at Rs 547.95, up Rs 8.40, or 1.56 %, SpiceJet was at Rs 60.25, up Rs 1.30, or 2.21 % and Interglobe Aviation was at Rs 890.75, up Rs 9.70, or 1.10 %on the BSE.