Shares of SpiceJet Ltd fell 2.75% to ₹43.45 in Friday’s trading session, mirroring broader weakness across aviation stocks due to surging global crude oil prices and shaken investor sentiment following the tragic Air India plane crash in Ahmedabad.
The drop comes after Brent crude surged over 11% to $77.21 per barrel, while WTI futures jumped over 11.6% to trade above $75 per barrel, following a large-scale airstrike by Israel on Iran targeting military and nuclear facilities. Analysts warn that if Iran retaliates or the Strait of Hormuz is disrupted, crude could rise sharply — with JP Morgan estimating a worst-case spike to $130 per barrel.
This surge in oil prices is especially damaging for airline stocks like SpiceJet, which operate on thin margins and are highly sensitive to aviation turbine fuel (ATF) costs, which are directly linked to crude oil prices.
Sentiment has also been dented by the devastating crash of Air India’s Dreamliner flight AI171, which resulted in the death of all 242 onboard and over 70 locals in the Meghani Nagar area of Ahmedabad. The incident has raised broader concerns across the aviation sector, impacting investor outlook.
