Aviation stocks witnessed massive selling pressure today and fell up to 5.5 per cent after jet fuel price was hiked by a steep 8.2 per cent.
Shares of Jet Airways (India) tumbled 5.27 per cent to Rs 419 on the BSE. Besides, SpiceJet scrip also plunged 5.42 per cent to Rs 21.80.
Prices of aviation turbine fuel (ATF) in Delhi were yesterday hiked by Rs 3,849.97 per kilolitre or 8.2 per cent to Rs 50,363 per kilolitre.
Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price increase will raise the financial burden of cash-strapped carriers.