Aviation stocks fall in India following ATF price hike

Aviation turbine fuel (ATF) prices for domestic airlines in India have increased by 5.46%, rising from Rs 115 to Rs 121.28 per litre. This marks the second consecutive monthly increase following a price hike in August.

The rise in fuel costs has impacted airline stocks, with InterGlobe Aviation (the parent company of IndiGo) falling 3.21% and SpiceJet declining 1.45% during Tuesday morning trading.

Because jet fuel typically accounts for approximately 35% to 40% of total operating costs for Indian carriers, analysts suggest the hike may pressure airline margins. There is also the potential for increased flight ticket prices ahead of the upcoming festive travel season, though final fare adjustments will depend on passenger demand and competition.