Shares of InterGlobe Aviation Ltd., which operates IndiGo, and SpiceJet declined sharply on Wednesday as investors reacted to Donald Trump's comments on the US-Iran ceasefire that triggered a surge in crude oil prices and heightened geopolitical concerns. According to reports from Essential Business Intelligence, the decline came after both Brent crude and West Texas Intermediate crude gained about 5% over the past two trading sessions, raising concerns over higher aviation fuel costs for airlines. IndiGo shares fell 6% to an intraday low of ₹5,094 on Wednesday, opening at ₹5,266.50 and trading at ₹5,114.50 on the NSE by 3:07 PM. SpiceJet shares were down 7% to today's low of ₹10.95 after opening at ₹11.49, though they recovered to trade 4.16% down at ₹11.5 per share. Global benchmark Brent crude oil prices surged 6.5% to $78.9 per barrel as of 3:08 PM IST, while West Texas Intermediate was up 6.49% to $75.01 per barrel, compared to previous levels of $74.16 per bbl for Brent and $76.60 per barrel for WTI. The republican President called Tehran "dirty players" and declared the ceasefire between the two countries effectively over, while speaking in Ankara, where he is attending the NATO summit.
According to the latest DGCA data, both IndiGo and SpiceJet witnessed significant declines in their market share during May. IndiGo's market share slipped to 64.9% in May, while SpiceJet's market share shrank dramatically to 2.5% during the month. On the positive side, Air India Group's market share climbed to 25.6% while Akasa Air's market share remained unchanged at 5.8%. Despite these challenges, India's domestic aviation market continued to show robust growth, with airlines carrying 1.53 crore passengers in May, over 11% higher than 1.38 crore people flown in April, as reported by the DGCA. Compared to May 2025, domestic air traffic jumped 9.49%, with passengers carried during January-May 2026 reaching 729.40 lakh against 715.70 lakh in the corresponding period of the previous year, registering an annual growth of 1.91%.
In terms of service quality, IndiGo topped the list with On Time Performance (OTP) at 82.8% at the 10 major airports in May, followed by Akasa Air at 78.3% and Air India Group at 74.5%. SpiceJet's OTP stood at a significantly lower 26.5%, highlighting operational challenges. The overall cancellation rate of scheduled domestic airlines stood at 0.55% in May, with DGCA data showing that 63,723 passengers were affected by flight cancellations, for which airlines shelled out ₹70.32 lakh towards compensation and facilities. Flight delays impacted more than 1.77 lakh passengers, with airlines spending a little over ₹4.24 crore towards facilitation, while 900 passengers were denied during the month, requiring carriers to shell out ₹98.60 lakh towards compensation and facilities.
The aviation sector decline was part of a broader market sell-off as crude oil prices surged 6.18% to $78.74 per barrel, with Brent crude hitting $78.74 per barrel amid renewed US-Iran tensions. According to PTI, the 30-share BSE Sensex tanked 1,677.12 points, or 2.15%, to settle at 76,503.60, while the 50-share NSE Nifty tumbled 516.65 points, or 2.12%, to end at 23,882.05. As of 3:07 PM, IndiGo was trading 5.2% lower at ₹5,114.50 and SpiceJet was down 4.16% at ₹11.5, compared to a 2.07% decline in the Nifty index and 2.16% decline in the Sensex index. As per Ajit Mishra - SVP, Research, Religare Broking Ltd, markets witnessed a sharp sell-off with benchmark indices posting their steepest single-day decline in over two months amid adverse global cues. The sharp decline was triggered by renewed geopolitical tensions after the US President indicated that the US-Iran peace deal is 'over', reigniting concerns over a prolonged conflict in the Middle East.
