Jet fuel price has been raised by 9 percent with effect from Wednesday, for the fourth straight month, posing a double whammy to passengers and air carriers.
While passengers could be hit by an increase in airfares, carriers are likely to see an erosion in their profit margins as jet fuel price accounts for about 35 percent of operating costs.
Shares of SpiceJet were trading with a marginal gain of 0.60 percent while the Jet Airway stock was down 1.72 percent at around 1 p.m. on the BSE. Interglobe Aviation, which owns budget carrier IndiGo, was the biggest loser, down 2.88 percent.
Jet fuel (aviation turbine fuel or ATF) price was increased by 9.2 percent on the last day of May.
01/06/16 Kalyani Pandey/International Business Times
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While passengers could be hit by an increase in airfares, carriers are likely to see an erosion in their profit margins as jet fuel price accounts for about 35 percent of operating costs.
Shares of SpiceJet were trading with a marginal gain of 0.60 percent while the Jet Airway stock was down 1.72 percent at around 1 p.m. on the BSE. Interglobe Aviation, which owns budget carrier IndiGo, was the biggest loser, down 2.88 percent.
Jet fuel (aviation turbine fuel or ATF) price was increased by 9.2 percent on the last day of May.
01/06/16 Kalyani Pandey/International Business Times
