IndiGo, SpiceJet, Taneja Aerospace, other aviation stocks jump up to 5%; here's why
InterGlobe Aviation Ltd, the parent of IndiGo, rose 1.57 per cent to Rs 4,536.80. SpiceJet Ltd gained 4.92 per cent to Rs 12.79. Select other aviation-related counters also traded in the green.
- Jun 3, 2026,
- Updated Jun 3, 2026 3:55 PM IST
Shares of aviation-linked companies witnessed strong buying interest in Wednesday's fag-end trading session after the Union Cabinet approved a one-time budgetary support package of up to Rs 10,000 crore aimed at stabilising aviation turbine fuel (ATF) prices for Indian airlines amid heightened fuel price volatility.
InterGlobe Aviation Ltd, the parent of IndiGo, rose 1.57 per cent to Rs 4,536.80. SpiceJet Ltd gained 4.92 per cent to Rs 12.79.
Select other aviation-related counters also traded in the green. Dreamfolks Services Ltd, Taneja Aerospace and Aviation Ltd, GMR Airports Ltd and TAAL Tech Ltd advanced by up to 2.44 per cent during the session.
"The budgetary support shall be in the form of interest-free advances to OMCs through the Demands for Grants of the Ministry of Petroleum and Natural Gas. The support shall be provided to OMCs to facilitate stable ATF pricing for airlines during the ongoing period of exceptional fuel price volatility arising from the West Asia crisis," the Ministry of Civil Aviation stated.
"The proposed mechanism will provide enhanced stability and predictability in ATF pricing for Indian airlines, enabling better operational and financial planning. It will shield OMCs from losses arising from volatile and elevated ATF prices during the ongoing West Asia crisis. The measure will help protect and sustain domestic and international air connectivity, ensuring continuity of air services," it also said.
According to the ministry, the arrangement is also expected to reduce the pass-through of fuel price shocks to passengers, thereby helping to contain fare volatility.
"The arrangement will support continued air connectivity to remote, regional, Tier-II and Tier-III cities, promoting balanced regional development and inclusive growth," it further stated.
The ministry also highlighted the broader economic benefits of stable airline operations, noting that the aviation ecosystem supports employment across airlines, airports, ground handling agencies, maintenance, repair and overhaul (MRO) providers, travel agencies, hospitality businesses and logistics operators.
"Continued air connectivity will facilitate movement of passengers, high-value cargo, business travellers and tourists, thereby supporting economic activity across sectors," it also said.
Shares of aviation-linked companies witnessed strong buying interest in Wednesday's fag-end trading session after the Union Cabinet approved a one-time budgetary support package of up to Rs 10,000 crore aimed at stabilising aviation turbine fuel (ATF) prices for Indian airlines amid heightened fuel price volatility.
InterGlobe Aviation Ltd, the parent of IndiGo, rose 1.57 per cent to Rs 4,536.80. SpiceJet Ltd gained 4.92 per cent to Rs 12.79.
Select other aviation-related counters also traded in the green. Dreamfolks Services Ltd, Taneja Aerospace and Aviation Ltd, GMR Airports Ltd and TAAL Tech Ltd advanced by up to 2.44 per cent during the session.
"The budgetary support shall be in the form of interest-free advances to OMCs through the Demands for Grants of the Ministry of Petroleum and Natural Gas. The support shall be provided to OMCs to facilitate stable ATF pricing for airlines during the ongoing period of exceptional fuel price volatility arising from the West Asia crisis," the Ministry of Civil Aviation stated.
"The proposed mechanism will provide enhanced stability and predictability in ATF pricing for Indian airlines, enabling better operational and financial planning. It will shield OMCs from losses arising from volatile and elevated ATF prices during the ongoing West Asia crisis. The measure will help protect and sustain domestic and international air connectivity, ensuring continuity of air services," it also said.
According to the ministry, the arrangement is also expected to reduce the pass-through of fuel price shocks to passengers, thereby helping to contain fare volatility.
"The arrangement will support continued air connectivity to remote, regional, Tier-II and Tier-III cities, promoting balanced regional development and inclusive growth," it further stated.
The ministry also highlighted the broader economic benefits of stable airline operations, noting that the aviation ecosystem supports employment across airlines, airports, ground handling agencies, maintenance, repair and overhaul (MRO) providers, travel agencies, hospitality businesses and logistics operators.
"Continued air connectivity will facilitate movement of passengers, high-value cargo, business travellers and tourists, thereby supporting economic activity across sectors," it also said.