Any hike in fuel prices is always have a major impact on aviation companies as it constituted major portion of operational expenses.
Share prices of airline companies fell between 3 percent and 5 percent to hit fresh 52-week lows in morning trade Monday after hike in jet fuel prices by the oil companies.
Jet Airways declined as much as 5 percent to hit a fresh 52-week low of Rs 171, SpiceJet fell 3 percent to 52-week low of Rs 66 and InterGlobe Aviation corrected 3 percent to 52-week low of Rs 800.25 on the BSE.
Jet fuel price has been increased by Rs 5,106 to Rs 74,567/kL in Delhi today morning.
Any hike in fuel prices is always have a major impact on aviation companies as it constituted major portion of operational expenses.
It is another blow to these companies which indicated earnings performance, which have been dismal for last couple of quarters, is expected to be week for September quarter as well.
At 9:18 hours IST, Jet Airways was quoting at Rs 172.80, down Rs 7.65, or 4.24 percent while SpiceJet was down 3.08 percent to Rs 66.05 and InterGlobe Aviation slipped Rs 17.20, or 2.08 percent to Rs 808.35.