Shares of InterGlobe Aviation, operator of IndiGo, dropped nearly 5% on April 13 as crude oil prices crossed $102 per barrel, raising concerns over rising fuel costs. Meanwhile, SpiceJet shares traded mixed during early market hours.
The decline comes after the government increased the windfall tax on Aviation Turbine Fuel (ATF) to ₹42 per litre from ₹29.5. The revised duty, announced by the Finance Ministry on April 11, took immediate effect and aims to improve domestic fuel availability amid geopolitical tensions in West Asia.
Earlier, on March 26, the government had imposed export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on ATF. The successive hikes have significantly impacted fuel pricing, which remains a major cost component for airlines.
Following the latest revision, ATF prices surged sharply, crossing a record ₹2.07 lakh per kilolitre in Delhi. As a deregulated commodity, jet fuel prices are linked to global benchmarks, adding pressure on airline profitability and stock performance.
