Aviation stocks were in high demand in morning trade on Wednesday, with InterGlobe Aviation climbing over 9%, despite jet fuel price hike.
InterGlobe Aviation, the parent firm of IndiGo, after starting the trade on a positive note further jumped 9.41% to ₹4,315 on the BSE.
The stock of SpiceJet surged 4.72% to ₹10.20.
2 March 2026
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Price of Aviation Turbine Fuel (ATF), or jet fuel, was more than doubled to a record ₹2.07 lakh per kilolitre on Wednesday, mirroring the surge in global oil prices last month, but for domestic airlines, the increase would only be 8.5%.
Domestic airlines will pay half of what other carriers such as non-scheduled, adhoc and charter would pay. For them the prices have gone up by ₹110,703.08 per kl, or 114.5%, to ₹207,341.22 per kl.
Jet fuel prices were deregulated more than two decades back, and since then, the rates are aligned with benchmark international prices, as per a written understanding with the airlines.
But since the Middle East war induced surge in global energy prices warranted a steepest increase ever to be made in the ATF prices, the government and state-owned oil companies decided to adopt a calibrated approach, industry sources said.
While foreign airlines and other carriers would pay market rates, prices for domestic airlines have been moderated, they said.
Fuel makes up for around 40% of an airline's operating cost.
Meanwhile, the country's largest airline IndiGo on Tuesday announced the appointment of William Walsh, a pilot and current chief of the global airlines' grouping IATA, as its next CEO.
