IndiGo, SpiceJet Extend Decline as Fuel Cost Concerns Return
Last Updated: 2nd September 2026 - 04:02 pm
Shares in the aviation sector continued to underperform on September 2 on account of an increase in crude oil prices amid concerns about rising fuel costs.
IndiGo operator InterGlobe Aviation fell 2.17% to ₹4,942.50 on the NSE in early trade, while SpiceJet was down 2.70% at ₹9.72 on the BSE.
This has been in continuation of the underperformance witnessed in the previous day due to concerns about increased Aviation Turbine Fuel (ATF) prices.
The new round of losses happened due to yet another increase in global crude oil prices. Brent crude oil increased by 1% to $95.60 per barrel and was heading towards its fourth gain in the last five days due to increasing tensions between the US and Iran.
Fuel costs are a key variable for airlines. The report notes that ATF accounts for nearly 40% of operating expenses for carriers, making fuel-price movements a closely watched indicator for the sector.
The pressure from crude oil came immediately after another domestic fuel-price increase.
There has been an increase of 5.46% in ATF prices in the previous trading session on Tuesday. The price rise was after the upward revision in prices resulting in an increase of Rs 6.28 in prices to Rs 121.28 per litre from Rs 115 per litre. It was the second consecutive month for increases in aviation fuel prices.
It occurred as the airline counters were already affected after the revision in the prices of fuel in the previous trading session. InterGlobe Aviation closed down by 3.48% at Rs 5,052, while SpiceJet closed down by 3.20% at Rs 9.99.
Before the latest increases, ATF prices had risen 7.5% in August after three straight monthly reductions.
The combination of higher crude prices and higher aviation fuel costs has kept airline stocks under pressure this week.
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