New Delhi: Shares to aviation companies (Jet Airways (India) and SpiceJet) rose as much as 7 per cent on Monday following the oil marketing companies took the decision to cut jet fuel (ATF) prices by a steep 7.3 per cent from Saturday.
This is the fourth straight reduction in prices since August on back of falling international oil rates. The move would help these companies improve profitability by reducing operating costs.
Jet fuel constitutes over 40% of an airline's operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.
SpiceJet surged nearly 7 per cent to Rs 14.85, while Jet Airways (India) surged 6% to Rs 247 on the BSE.
