On 26 September the government introduced an import duty of 5% on aviation turbine fuel due to this shares of aviation stocks lower down with 2-4%.
Shares of Jet-Airways fell over 4% Spice Jet slid over 2% and InterGlobe Aviation fell over 3%. Shares of Jet Airways hit a 52 week low of Rs. 181.3. Spice Jet shares too touched a 52 week low of Rs. 66.7 while shares of InterGlobe Aviation also dropped to a 52 week low of Rs. 818.6.
The government hiked customs duty on September 19 products, including ATF to contain current account deficit(CAD).
Currently, airlines are struggling with rising fuel and operations costs. The rising costs will directly hit customers through higher fares.
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