Kingfisher Airlines (up 6.15%), Jet Airways (India) (up 3.99%) and SpiceJet (up 3.63%), moved higher.

The BSE Sensex was up 44.13 points or 0.26% to 16,903.93.

Aviation turbine fuel (ATF), or jet fuel typically makes up almost half of an airline's operating cost. The civil aviation ministry had earlier proposed to slash state taxes on jet fuel, which would help bring down costs for ailing local airlines that are reeling under debt and losses. According to reports, taxes and duties levied by governments—central and states—increase jet fuel cost by 50% in India, compared with neighbouring countries.

Reports suggest that the ATF price is calculated after adding freight charges from Gulf to India, countervailing duty of 8% (as the customs duty on ATF is abolished), Basic CENVAT (excise) duty of 8% and sales tax from state governments ranging from 16% - 30%. In addition, there are refinery margins, domestic transportation charges, marketing margins of oil companies and throughput charges paid to the airports. All these taxes and charges make ATF in Indian cities costlier by about 50% compared with Karachi, Islamabad and even with Singapore.

State-run oil marketing companies reduced the prices of ATF by 5%, effective 16 June 2012. The price of ATF in Delhi was reduced by Rs 3,260 per kilo litre (kl), or 5%, to Rs 62,410 per kl.

State-run oil marketing companies revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.