Jet Airways cruising high

Jet Airways is on the rise today with the stock surging 5% at Rs.439.95 with an intra day high at Rs.444. It had hit the upper circuit yesterday at Rs.424.60.

The stock is up after the oil companies announced the sharpest cut ever in aviation turbine fuel (ATF) of 12.5%. This is a four-year low for the ATF prices and will help the company and other airlines to improve its margins as ATF accounts for almost 50% of its total operating cost. Despite this sharp fall in price, Jet has announced that it does not plan to slash passenger rates. With Spicejet running low, there is major demand for airline seats and Jet wants to capitalize on this and hence not reducing rates