Share price touches 52 week low of Rs 42.70, falling 3 percent intraday on June 16
SpiceJet
SpiceJet share price touched a 52 week low of Rs 42.70, falling 3 percent intraday on June 16 after jet fuel prices flew to an all-time high.
The price of aviation turbine fuel (ATF) has been hiked by 16.3 percent to Rs 1.41 lakh per kilolitre in Delhi.
ATF price has nearly doubled in 2022. Prices on June 3 were cut 1.3 percent, the first reduction after 10 hikes, on softening international crude oil rates.
Earlier, in May, ATF prices rose five percent to Rs 1.23 lakh per kilolitre in the national capital.
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“Prices have increased more than 120% since June 2021. This massive increase is not sustainable and governments, central and state, need to take urgent action to reduce taxes on ATF that are amongst the highest in the world,” said Ajay Singh, chairman and managing director, SpiceJet
“We have in the last few months tried to absorb as much burden of this fuel price rise, which constitutes more than 50% of our operational cost, as we could.
“The weakening of the Indian rupee against the US dollar further significantly impacts airlines as our substantial cost is either dollar-denominated or pegged to the dollar.
“The sharp increase in jet fuel prices and the depreciation of the rupee have left domestic airlines with little choice but to immediately raise fares and we believe that a minimum 10-15% increase in fares is required to ensure that cost of operations are better sustained,” he added.
At 10:04 hrs SpiceJet was quoting at Rs 43, down Re 1 or 2.27 percent on the BSE.
Jet Airways was quoting at Rs 104.90, up Rs 0.85 or 0.82 percent, and InterGlobe Aviation at Rs 1,725.20, down Rs 10.10 or 0.58 percent.
