Spicejet is among the top five losers on the BSE since the opening bell today. The stock, which had closed yesterday at Rs.44, opened lower today at Rs.43.60 and went down to hit a new 52-week low at Rs.41.60; it has infact been hitting new lows this entire week.
Indigo too is in the red, down almost 4.5% at Rs.1662 but did not hit new lows which currently stands at Rs.1556.25.
Airline stocks are in the red as the price of Aviation Turbine Fuel (ATF) has more than doubled in 2022. The price was hiked by 16.3% to Rs.1.41 lakh/kilolitre. This comes after a 1.3% cut seen on 3rd June.
This along with the deprecation of the rupee has left Spicejet with no option but to hike the airfares; the company said that a minimum of 10-15% fare hike is required to offset the rise in ATF prices and rupee depreciation. The rise in fares impacts bookings and the margins as the company will never be able to pass-on the full cost rise to customers.