Cheering the development, shares of Kingfisher Airlines, rose as much as 3.3 per cent at start, while at 10:47 AM, it quoted at Rs 23.10, up 1.09 per cent from previous close on BSE.
Following the price cut, aviation industry would take a breath of relief as it reels under the mounting losses owing to high cost of jet fuels. Also the sentiments were boosted by recovery in rupee against dollar, which would also help easing the import costs.
On the similar path, jet airways surged as much as 3.3 per cent during the early morning trade, while at 10:48 AM, it quoted at Rs 222, up 1.95 per cent from previous close on BSE.
The ATF cost accounts for nearly 50% of the operating cost of any airline and its prices also vary from state to state due to differential taxes levied. Also jet fuel prices have increased by 30 per cent since December 2010, and borrowings have risen to all time high.
Dion Global Solutions Ltd