After ATF prices were hiked to a record high on Thursday, shares of SpiceJet and InterGlobe Aviation were heavily sold.
SpiceJet's stock dropped 7.05 % to Rs 40.90 per share on the BSE. During the day, it fell 8.29 % to Rs 40.35, a one-year low.
IndiGo's parent company, InterGlobe Aviation, slumped 5.22 % to Rs 1,644.65 a share. During the day, the stock plummeted 5.83% to Rs 1,634.
Jet fuel costs were raised by the largest 16 % increase in history on Thursday, bringing rates to an all-time high in tandem with rising international oil prices.
According to Ajay Singh, Chairman and Managing Director of SpiceJet, the sudden increase in aviation turbine fuel prices and depreciation of the rupee have left domestic airlines with little choice but to quickly boost rates.
Singh stated in a statement that a minimum 10-15% rise in flight tickets is essential to guarantee that the expense of operations is properly supported.
The cost of running a plane will rise as the price of jet fuel rises. ATF accounts for up to 40% of an airline's operating costs.