Airline stocks IndiGo, SpiceJet gain after govt slashes ATF rates
Source: Business Standard
Aviation stocks, IndiGo, SpiceJet, ATF rates
InterGlobe Aviation (IndiGo) and SpiceJet stocks traded in the positive territory and advanced up to 5.4 per cent intraday on the BSE after the central government cut the prices of air turbine fuel (ATF).
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As per reports, ATF prices were cut for the second month in a row. In Delhi, the price was reduced by 6.2 per cent to Rs 87,597 per kg in October, from Rs 93,480 per kg in September.
Further, in Kolkata, the price has been fixed at Rs 90,610.8 per kilogram, while it is set at Rs 81,866.13 in Mumbai, and Rs 90,964.43 per kg in Chennai. The new ATF rates are effective from today, October 1, 2024.
ATF and natural gas are currently exempted from goods and services tax (GST) and are taxed at the state level, including excise duty and value-added tax (VAT). Airlines had asked the government during the Budget 2024 to include ATF prices under GST as it would simplify the tax structure and potentially reduce the overall burden on airlines and oil & gas companies.
Meanwhile, SpiceJet shares were also pushed higher after Plutus Wealth Management acquired 8.5 million shares, representing a 0.66 per cent stake in the airline, via a bulk deal on the BSE.
SpiceJet recently raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) issue. The QIP, which began on September 16 and ended on September 18, received robust response from eligible investors and was significantly oversubscribed, reflecting confidence in the company’s growth prospects, SpiceJet said in a statement.
In the past one year, shares of IndiGo have gained 97.7 per cent, while SpiceJet has risen 77.2 per cent, compared to the BSE Sensex’s rise of 29 per cent during the same period.
First Published: Oct 01 2024 | 12:07 PM IST
