ATF prices have also been coming down in the last few weeks after jumping to record highs
ATF prices have also been coming down in the last few weeks after jumping to record highs
There was huge demand for aviation stocks on Thursday, a day after the Civil Aviation Ministry said domestic airfare limit Will be removed.
The Union Aviation Ministry on Wednesday said that after a period of about 27 months, the limit imposed on domestic airfares will be removed from August 31.
Shares of InterGlobe Aviation opened at ₹2,070.05, then proceeded to touch ₹2,080.80, registering a jump of 2.09% from its previous close.
SpiceJet Ltd opened at ₹46.05, then jumped 6.80% to ₹47.90 per share.
“The decision to remove the airfares limit has been taken after careful analysis of daily demand and Air Turbine Fuel (ATF) prices. The stabilization has started and we are certain that the sector will witness growth in domestic traffic in the near future. is ready.” Aviation Minister Jyotiraditya Scindia said on Twitter.
ATF prices have declined during the past few weeks after jumping to record levels due to the Russo-Ukraine war that began on February 24.
The ATF price in Delhi on August 1 was Rs 1.21 lakh per kilo liter, which was about 14% lower than the previous month.
On resumption of services on May 25, 2020, after a two-month lockdown due to the COVID-19 pandemic, the ministry had imposed lower and upper limits on domestic airfares depending on the duration of the flight.
On Wednesday, the Ministry of Civil Aviation, in an order, said: “After reviewing the current status of scheduled domestic operations, such as passenger demand for air travel… it has been decided to remove the fare band notified from time to time.” In respect of airfares with effect from 31st August, 2022″.