Indian Aviation Stocks Plummet After Air India Crash and Oil Price Surge
Indian aviation stocks faced heavy selling pressure on June 13, 2025, following the tragic crash of an Air India Boeing 787-8 Dreamliner, which killed 241 of the 242 passengers and crew onboard shortly after takeoff from Ahmedabad. The incident, the deadliest aviation disaster in a decade, triggered a sharp decline in shares of InterGlobe Aviation (IndiGo) and SpiceJet, which fell up to 4% and 2.6%, respectively.
The sell-off was exacerbated by escalating Middle East tensions after Israel’s airstrikes on Iran’s nuclear and missile facilities, prompting fears of retaliation. This drove Brent crude prices up 10% intraday to $78.50 per barrel, marking a 12% weekly gain—the largest since 2022. JP Morgan’s warning of oil potentially hitting $130 per barrel in a worst-case scenario further dented investor confidence, as higher fuel costs threaten airline profitability.
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