SpiceJet Falls 7%, IndiGo Down 4.6% As West Asia Tensions Disrupt Flights

On the BSE, SpiceJet shares dropped more than 7% during intraday trade on March 4, extending losses for a second straight session. IndiGo shares were trading 4.6% lower at ₹4,310.40 apiece, according to exchange data.

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IndiGo said on March 4 that it cancelled more than 500 international flights between February 28 and March 3, 2026, due to ongoing Middle East tensions and airspace restrictions. HSBC analysts led by Parash Jain said in a note that if cancellations persist for seven days, they could reduce IndiGo’s profit before tax by about ₹32 crore, equivalent to nearly 6% of its fourth-quarter profit before tax.

Tourism And Railway Stocks Under Pressure

Travel and tourism-related counters also declined. Shares of Ixigo traded lower, while India Tourism Development Corporation fell 4%. Easy Trip Planners was down 3% on the NSE, as per exchange data.

Railway-linked stocks weakened amid concerns over travel disruptions. Rail Vikas Nigam Ltd dropped over 5% to a fresh 52-week low of ₹283.20 per share. Indian Railway Finance Corporation declined 3%, also affected by a muted response to its Offer For Sale, according to exchange data.

Hospitality stocks were also under pressure. Lemon Tree Hotels fell more than 3%, Indian Hotels Company declined over 2%, while EIH Ltd, Chalet Hotels, and ITC slipped up to 1%.

Escalating Conflict In West Asia

The decline in travel and hospitality stocks followed continued military action in West Asia. Iran carried out fresh strikes on Gulf countries in retaliation for joint attacks by the U.S. and Israel, while further strikes were launched on Iran, according to international media reports.

The escalation has caused airspace restrictions in some parts of the Middle East, which has led to domestic airlines cancelling flights on international routes. The concerns about possible supply problems and rising crude oil prices have made the market even more unstable.

Furthermore, the long-term losses of airline, tourism, and hospitality stocks indicate what impact geopolitical issues and operational challenges have had on other industries related to travel and moving around.