Shares of InterGlobe Aviation Ltd (IndiGo) dropped sharply by 4.06% to ₹5,254 in Friday’s trade, as the aviation sector reeled under dual pressures — surging crude oil prices and shaken investor sentiment following the recent Air India plane crash.
The stock had previously closed at ₹5,476.50 and opened weaker on Friday, touching an intraday low of ₹5,176. The company’s market capitalization stood at ₹2.03 trillion with average volumes crossing 2 million shares.
The immediate trigger was the steep rally in crude oil prices after Israel launched a large-scale airstrike on Iran early Friday morning, targeting multiple military and nuclear sites. Brent crude futures surged over 11% to $77.21 per barrel, while WTI crude jumped 11.6% to trade above $75 per barrel.
Analysts noted that jet fuel — a major component of airline operating costs — tends to spike in tandem with crude, impacting profitability. Additionally, concerns escalated after JP Morgan warned that crude could touch $130 in a worst-case scenario if the Strait of Hormuz — a key global oil chokepoint — faces disruption.
Adding to the pressure was lingering anxiety in India’s aviation space after an Air India Boeing 787-8 Dreamliner flight from Ahmedabad to London crashed shortly after takeoff, killing all 242 on board along with over 70 residents in the impact zone. The tragic incident has raised near-term safety concerns and impacted sentiment around the sector.
While no technical fault has been confirmed yet, investors are cautious ahead of any official updates. The broader impact on the airline sector could persist if crude oil volatility continues or if public confidence in aviation is shaken further.
