Airline Stocks Hit 52-Week Lows From Customs Duty Woes

Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Stocks of aviation companies plunged in morning trade on Thursday after an increase in their import duty burden. The government on Wednesday night introduced a 5 percent basic customs duty on aviation turbine fuel (ATF) that is used to fly airplanes along with an increase in rates for 18 other items.

    Airline Stocks Hit 52-Week Lows From Customs Duty Woes

    This duty is applicable from the midnight of 27 September, which means the expenses of air carrier have already been increased by Rs 2,000 per kilolitre (approx as per current rates).

    Shares of domestic carriers like InterGlobe Aviation (IndiGo), Jet Airways and SpiceJet fell in the morning session. While prices of Interglobe Aviation stocks fell by 4.3 percent to Rs 818 a piece, the shares of Jet Airways and SpiceJet plunged to new 52-week lows after a 6 percent and 3.5 percent slump respectively.

    Jet Airways' new 52-week is now Rs 173.15 a piece. Apart from the rise in costs, the airlines had defaulted salary payments to its employees once again for the month of August. "Jet Airways today remitted half of the second installment of pending emoluments of its pilots, AMEs and senior management for August 2018," it said in a statement yesterday.

    SpiceJet fell to a new 52-week low of Rs 66.70 a piece. The carrier has announced several new flight routes this week, including an international flight to Hong Kong.

    Read more about: jet airways spicejet indigo
    Story first published: Thursday, September 27, 2018, 12:28 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
    India's LARGEST EVER political poll. Have you participated yet?

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more