Aviation stocks – Jet Airways, Indigo or Interglobe Aviation and SpiceJet are amongst the gainers on the bourses today.

The reason for this new found love for airline stocks is reduction in Aviation Turbine Fuel (ATF) price. This was reduced by 3.8% to Rs.45,411/kl. If one may recollect, in August too, ATF prices were brought down and that time, the cut was bigger at 4.2%.

A cut in ATF price is always good news for airline companies and ATF comprises 40% of the total operating costs and any price fall, means an improvement in margins