Jet Airways jumps 8%, SpiceJet up 5%; ticket fares soar Aviation stocks SpiceJet and Jet Airways are flying high on ticket price hike. SpiceJet has announced an airfare hike by 25-30 percent as aviation turbine fuel (ATF) is at an all-time high. Jet Airways too has hinted in that direction. SpiceJet jumped 5 percent in early morning trade Wednesday. At 09:53 hours, it was at Rs 19.55, up Rs 0.60, or 3.17 percent on the BSE. Earlier in an interview to CNBC-TV18 , SL Narayanan, group chief financial officer of Sun Group (which owns SpiceJet) said, "At this time, there is a sense of aggravation and prices have to go up. But it has also happened at a time when the demand is extremely lukewarm. Given the kind of excess capacity that almost all carriers are having now, there are certain limits to raising prices to recover the cost of increasing cost." This month Jet fuel (ATF) prices were hiked by a steep 6.9 percent, taking the rates to record high of Rs 75,031 per kilolitre. The three fuel retailers - IOC, Hindustan Petroleum and Bharat Petroleum - revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month. Meanwhile, JetAirways surged around 8 percent intraday. At 09:59 hours, the stock was at Rs 324.60, up Rs 15.20, or 4.91 percent on the BSE. The stock has been in focus as Abu Dhabi carrier Etihad extended the deal deadline ending on August 30. The government has now recommended the over Rs 2000 crore Etihad deal to the cabinet committee for approval. The deal is likely to be completed by September 20 as all regulatory clearances are expected to be in place by then.
Posted on: Wed, 04 Sep 2013 06:11:07 +0000
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