IndiGo, SpiceJet Shares Fall In Early Trade On ATF Price Hike

Mumbai September, 01: Airline stocks came under pressure on Tuesday after aviation turbine fuel (ATF) prices were raised by 5.46%, marking the second consecutive monthly increase and adding to the industry’s fuel-cost burden.

ATF prices were increased by ₹6.28 per litre to ₹121.28 per litre for domestic airlines, according to the information provided from state-owned oil marketing companies. The increase follows a ₹5 per litre hike on August 1.

Jet fuel is one of the biggest costs for airlines and can account for up to 40% of their operating expenses. That makes a rise in ATF prices particularly relevant for carriers, especially when higher fuel costs cannot be immediately passed on through ticket prices.

The latest revision comes as ATF prices are adjusted on the first day of each month based on international benchmark prices and foreign exchange rates. Actual prices also vary between states because of local taxes.

IndiGo Shares Fall 3.12% As Of 10:32 AM

InterGlobe Aviation shares, the parent company of IndiGo, were trading at ₹5,070.50, down ₹163.50 or 3.12%, as of 10:32:54 AM IST on September 1, 2026, according to the market data provided.

The stock opened at ₹5,065 and initially moved higher, touching ₹5,106. It then lost ground and remained below the previous close of ₹5,234 through most of the morning session.

The IndiGo share price was therefore showing a clear negative reaction as investors assessed the impact of another increase in aviation fuel costs.

SpiceJet also remained under pressure. The stock was trading at ₹10.19 as of 10:32 AM IST after moving above ₹10.30 earlier in the session. It fell towards ₹10.17 before recovering slightly.

SpiceJet Also Slips As Fuel Costs Rise

SpiceJet’s share price morning movement broadly tracked the weakness seen across airline stocks following the ATF announcement.

Higher jet fuel prices can put pressure on airline profitability because fuel expenditure moves directly with operating activity. The eventual impact, however, depends on several factors, including aircraft utilisation, fuel efficiency, fare levels and the extent to which airlines can absorb or pass on the additional cost.

For SpiceJet, the information provided does not point to a separate company-specific announcement driving the stock movement. The weakness came against the backdrop of the sector-wide increase in ATF prices.

ATF Hike Comes Alongside Commercial LPG Increase

The increase in jet fuel prices was accompanied by a ₹9.50 rise in the price of a 19-kg commercial LPG cylinder.

Commercial LPG now costs ₹2,747.50 per cylinder, compared with ₹2,738 previously. The latest increase follows two monthly cuts, including a ₹192 reduction in August and a ₹183.50 reduction in July.

Commercial LPG prices had risen sharply earlier this year after the escalation in international energy prices. Between February and June, the price of a 19-kg cylinder had increased by ₹1,373, from ₹1,740.50 to ₹3,113.50, before falling in July and August.

Prices of domestic LPG remained unchanged at ₹942 for a 14.2-kg cylinder. Petrol and diesel prices were also unchanged.

Higher Fuel Costs Remain A Key Risk For Airlines

For airlines, the timing of the latest ATF increase is important because it follows another increase just a month earlier.

Two consecutive hikes can increase operating costs at a time when airlines continue to balance capacity, fares and demand. The effect on individual carriers will vary depending on their operating model and ability to manage fuel consumption and pricing.

The early market reaction was negative. IndiGo shares were down more than 3% by 10:32 AM, while SpiceJet also traded below its earlier session levels.

Conclusion

The 5.46% increase in ATF prices has weighed on airline stocks in Tuesday’s morning trade, with IndiGo emerging as one of the notable decliners.

InterGlobe Aviation shares fell 3.12% to ₹5,070.50 as of 10:32:54 AM IST on September 1, 2026. SpiceJet was trading at ₹10.19 around the same time after giving up its early gains.

With ATF prices now higher for the second straight month, fuel costs are back in focus for the aviation sector. The impact on earnings will depend on how carriers manage the higher input cost and whether the increase can be absorbed through operational efficiencies or reflected in fares.

Source:

• https://www.nseindia.com/get-quote/equity/SPICEJET/SPICEJET-LTD
• https://www.nseindia.com/get-quote/equity/INDIGO/InterGlobe-Aviation-Limited