IndiGo, SpiceJet shares tumble on dual blow: Oil surge, Air India crash
Aviation stocks fall: InterGlobe Aviation shares fell as much as 5.62 per cent, while the counter of Spice Jet slipped 5.64 per cent on BSE
 "IndiGo, SpiceJet shares tumble on dual blow: Oil surge, Air India crash")
Shares of Indian aviation companies extended losses on Friday, weighed down by surging crude oil prices and negative sentiment following the deadly Air India crash.
InterGlobe Aviation shares fell as much as 5.62 per cent to ₹5,175 apiece, while the counter of Spice Jet slipped 5.64 per cent to ₹42.16 on the BSE. Shares of both aviation companies declined for the second straight day, with IndiGo logging its worst session since April 25, and SpiceJet seeing its steepest fall since May 6.
As of 10:00 AM, IndiGo and SpiceJet traded 3.79 per cent and 2.5 per cent lower, respectively, compared to a 1.06 per cent decline in the benchmark BSE Sensex.
West Asia tensions flare
The escalation in the war between Iran and Israel triggered the crude oil prices to surge over 10 per cent on Friday, potentially weighing on the airline's bottom line.
The Israeli military has begun airstrikes against Iran, targeting nuclear locations to block Tehran from developing atomic weapons, in an operation dubbed 'Rising Lion'. Prime Minister Benjamin Netanyahu said Israel had “struck at the heart of Iran’s nuclear enrichment program” as well as leading nuclear scientists and the ballistic missile program.
Israel’s Defence Minister, Israel Katz, declared a state of emergency shortly after the strikes. The head of the Islamic Revolutionary Guard Corps, Hossein Salami, was killed in the strikes, according to reports. Meanwhile, Iran vowed a harsh blow against Israel and the US after the strike.
Oil prices rose over 10 per cent and are on course for the biggest weekly gain since 2022. Brent crude price was up 9.66 per cent to $76.00 per barrel, while WTI crude prices were higher by 9.76 per cent at 74.68, as of 10:00 AM IST. ALSO READ: Decoded: How Iran and Israel's decades-old conflict exploded into war
Air India tragedy
Investor sentiments had already taken a back seat after a London-bound Boeing Co. 787 Dreamliner operated by Air India crashed soon after takeoff in Ahmedabad on Thursday. Air India confirmed that 241 people on board were killed.
The 12-year-old aircraft was carrying 242 passengers and crew members. The passengers comprised 169 Indian nationals, 53 British nationals, seven Portuguese nationals and one Canadian national.
The flight was under the command of Captain Sumeet Sabharwal, a Line Training Captain (LTC) with 8,200 hours of flying experience, and First Officer Clive Kundar, who had logged 1,100 hours. The DGCA confirmed that “the aircraft fell on ground immediately after departure” and that a detailed investigation had been initiated.
Even global aviation stocks felt the shock, with Boeing, the aircraft manufacturer, experiencing a sharper decline in its stock prices. Shares of Spirit AeroSystems and General Electric fell on Wall Street's Thursday trading.