Aviation stocks take wings on firm market, ignore ATF hike

MUMBAI: Aviation stocks opened in the green on Friday, tracking a firm market trend and ignoring hike in jet fuel prices.

Kingfisher Airlines was up 3.07% at Rs 35, while Jet Airways higher by 3.16% at Rs 160. However, Spice Jet was marginally down at Rs 13.50 on the BSE.

State owned oil marketing companies on Thursday increased the price of jet fuel by 3.4%. This is the first increase after the fuel price was slashed eight times in the last two months.

Aviation turbine fuel (ATF) rates had soared to an all time high of Rs 71,028.26 per kilolitre in August last year when crude prices were hovering around the $140/barrel mark. With crude oil having headed south since than, fuel prices have been witnessing cuts in the subsequent months.

Currently, the ATF price in Delhi typically is Rs 31,496.31/kl, a rise of Rs 1,039.1/kl from the previous price. In Mumbai, ATF price is expected to increase by Rs 1,068.87/ kl to Rs 32,447.65/kl.