Budget 2016: Jet Airways, SpiceJet, InterGlobe hit hard on ATF excise duty hike
BT Online February 29, 2016
Shares of avaition companies Jet Airways, SpiceJet and InterGlobe Aviation slipped up to 6 per cent after Finance Minister Arun Jaitley announced hike in excise duty for Aviation Turbine Fuel (ATF) from 8 per cent to 14 per cent.
The stock of Jet Airways hit an intraday low of Rs 478.05, down 5.38 per cent on the Bombay Stock Exchange (BSE).
Stock of SpiceJet fell as much as Rs 60.15, down 6.45 per cent, while InterGlobe Aviation shed 5.86 per cent to Rs 782. 2.50 per cent
ATF is one of the biggest cost in airline operations and thus a hike in excise duty for ATF prices dampens market sentiments towards aviation stocks.
Earlier this month, oil companies had slashed air turbine fuel (ATF) by a steep 12 per cent.