Share price of InterGlobe Aviation (IndiGo) slipped 5% to ₹4,293 on the BSE in Wednesday's intra-day trade, quoting close to its 52-week low of ₹4,272 touched on March 3, 2025.
IndiGo stock was seen trading near its 52-week low. Photo:PTI
The share price of InterGlobe Aviation (IndiGo) hit an over 11-month low of ₹4,293, as the stock slipped 5 per cent on the BSE in Wednesday’s intra-day trade.
In the past three trading days, the stock price of the airline company has dipped 13 per cent as IndiGo suspended flight operations to the Middle East due to airspace restrictions amid escalating US-Iran tensions.
The stock price of IndiGo now quotes near its 52-week low of ₹4,272 touched on March 3, 2025. It tanked 31 per cent from its 52-week high of ₹6,225.05 hit on August 18, 2025.
At 11:44 AM; IndiGo was trading 4.6 per cent lower at ₹4,312.35, as compared to 1.9 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped two-fold with a combined 1.8 million equity shares changing on the NSE and BSE.
Why airline stock under pressure?
In view of the evolving airspace restrictions over Iran and the Middle East, more than 500 flights to the Middle East and select international destinations have been cancelled between February 28, 2026 and March 3, 2026, InterGlobe Aviation said in an exchange filing.
The company said it continues to closely monitor the revenue environment arising from this situation.
The company’s operational teams are continuously assessing the evolving regional developments, recalibrating flight schedules, and planning repatriation operations in coordination with relevant authorities in India and the respective international jurisdictions, with the objective of minimizing disruption to passengers, it added.
JM Financial Institutional Securities view on IndiGo
Escalation of conflict in the Middle East presents a near-term negative for IndiGo, driven by disruption to Gulf airspace and potential operational constraints at Dubai - a critical global transit hub - which could temporarily reduce international available seat kilometers (ASKs), depress connectivity traffic, and lower aircraft utilization. Concurrently, a geopolitical spike in crude oil prices poses margin risk given IndiGo’s high fuel cost sensitivity and limited hedging, analysts at JM Financial Institutional Securities said in the company update.
For every $5 increase in Brent price, Indigo’s earnings is expected to contract by 13 per cent as per analysts’ calculation, assuming INR to be constant.
IndiGo’s structural strengths - cost leadership, strong liquidity, and resilient domestic demand - position it well to absorb temporary shocks, the Middle East disruption introduces a clear near term earnings and sentiment overhang via international capacity disruption and fuel cost volatility.
A swift de-escalation would likely see operations and bookings normalize quickly, but a prolonged disruption risks capacity rationalization, margin compression, and estimate downgrades. Analysts said they therefore view the situation as tactically negative in the immediate term, with the duration of airspace restrictions and crude price trajectory remaining the key variables for stock direction. ====================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.
 "IndiGo skids 13% in 3 days, nears 52-wk low; why airline stock trades weak?")
