IndiGo, SpiceJet Fall Up To 5% As Brent Rises Above $82 After U.S.–Israel–Iran Escalation

Aviation Stocks Decline In Early Trade

Shares of InterGlobe Aviation, which operates IndiGo, dropped over 5% in early trade on March 2. On the BSE, the stock opened at ₹4,460.90, touched an intraday high of ₹4,664.95 and was trading lower during the session, according to exchange data.

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SpiceJet shares declined करीब 4%. The stock opened at ₹15.31 on the BSE, hit an intraday high of ₹15.60 and a low of ₹14.91, as per exchange data.

The decline followed a surge in crude oil prices. Bloomberg reported that Brent crude climbed as much as 13% to above $82 per barrel after coordinated U.S.–Israel strikes on Iran and subsequent retaliation by Iran.

Flight Cancellations And Airspace Restrictions

The escalation in West Asia led to the closure of key airspaces in the Gulf region. According to media reports citing airline data, Indian carriers, including IndiGo, Air India, and SpiceJet, cancelled more than 350 international flights as of March 1. Airlines also rerouted certain long-haul services, including North American routes with technical halts in Europe.

The Directorate General of Civil Aviation issued a safety advisory valid until March 2, advising airlines to avoid 11 countries in the region, according to brokerage notes.

Fuel Cost Exposure Highlighted By Brokerages

Emkay said in a note that the expanding no-fly zones in the Middle East could disrupt international operations and increase flight time and fuel consumption. The brokerage added that a spike in crude prices would raise aviation turbine fuel costs, affecting profitability.

Analysts cited in reports said IndiGo’s earnings per share could decline by 13% for every $5 increase in Brent crude prices. Fuel accounts for around 40% of an airline’s operating costs, according to brokerage estimates.

With Brent trading above $82 per barrel and multiple flight cancellations reported as of March 1, aviation stocks remained under pressure in early trade on March 2, reflecting the impact of higher crude prices and operational disruptions, according to exchange and Bloomberg data.