02 Sep , 2026 By : Debdeep Gupta
Shares of domestic airlines IndiGo and SpiceJet continued their losing streak on Wednesday amid rising crude oil prices and the latest hike in Aviation Turbine Fuel (ATF) prices.
InterGlobe Aviation, the parent company of IndiGo, was trading at Rs 4,942.50 on the NSE at 9:31 am, down 2.17%. SpiceJet shares were trading at Rs 9.72 on the BSE, down 2.70%.
On Wednesday, Brent crude jumped 1% to $95.60 a barrel, heading for its fourth gain in five sessions, as escalating fighting between the US and Iran heightened concerns over disruptions to energy flows through the Strait of Hormuz.
The rise in crude prices comes after domestic ATF prices were increased 5.46% on Tuesday, marking the second consecutive monthly hike. ATF prices rose by Rs 6.28 per litre to Rs 121.28 per litre from Rs 115 per litre.
Airline stocks had already ended lower on Tuesday following the ATF price revision. InterGlobe Aviation fell 3.48% to Rs 5,052, while SpiceJet declined 3.20% to Rs 9.99.
ATF prices had risen 7.5% in August, following three consecutive monthly reductions. Fuel accounts for nearly 40% of an airline's operating costs, making movements in ATF prices a key factor for the sector.
ATF is one of the biggest operating costs for airlines, accounting for nearly 40% of their total operating expenses. Any sustained rise in jet fuel prices can therefore put pressure on airline margins, particularly when carriers are unable to fully pass on higher fuel costs to passengers.
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