The share prices of domestic carriers Jet Airways and Spicejet rose sharply on Monday, continuing their rally from last week on falling fuel prices.

While the stock price of Jet Airways climbed higher by around 8% to trade at Rs 431.15 on the Bombay Stock Exchange (BSE), Spicejet shares gained over 3% to trade at Rs 27.85.

The rally in stocks is mainly driven by a continued fall in aviation turbine fuel price (ATF).

In the latest cut, fuel price is reduced by a whopping 9.5% or Rs 4,860 to Rs 46,407/kl.

Overall, the airlines have seen a nearly 40% drop in fuel prices from a high of about Rs 80,000 last year, reported.

Lower fuel prices have helped budget carrier Spicejet to post robust profit for a second consecutive quarter (April-June).

Fuel expenses of Spicejet declined sharply by 53.6% to Rs 359 crore in the June quarter as compared to Rs 773 crore in the same period last year. The company was also able to reduce its costs by 42% in the quarter ended June 2015.

The Gurgaon-based airline posted a profit of Rs 71.80 crore for the first quarter of the current fiscal year, as compared to a loss of Rs 124.1 crore in the same period last year.

SpiceJet, India's fourth-largest airline by market share, had earned a profit of Rs 22.5 crore in the March quarter against a loss of Rs 322 crore in the same quarter last year.

Global crude oil prices have been halved since June last year as oversupply concerns continues to rattle the oil market.

"Fuel price is the single largest cost for airlines, especially in India where fuel cost is high. So any drop in fuel cost will benefit the industry significantly," SpiceJet COO Sanjiv Kapoor told NDTV Profit last month.

Share prices of Jet Airways have risen by over 70% since mid-June, while Spicejet shares went up by nearly 55%.

Cheaper crude oil prices have also enabled the domestic airlines to roll out aggressive discounts for the passengers.