The share price of IndiGo has nosedived 8% intra-day. This is after crude prices hit the roof. The big worry is that crude soaring past the $115 per barrel mark will lead to a significant spike in the fuel cost for this low-cost carrier. InterGlobe Aviation’s stock was the top Nifty loser amid skyrocketing crude prices.
Among the list of tourist stocks, IndiGo was the major loser, taking down the sector by 5.7% as Jet fuel prices have more than doubled, with some spot benchmarks surging up to $80 a barrel.
How is the Middle East crisis impacting IndiGo?
The ongoing US–Israel conflict with Iran has rendered significant portions of West Asia airspace inaccessible, leading to widespread flight cancellations and rerouting of services. This, combined with the existing closure of Pakistan’s airspace, has disrupted IndiGo’s international operations. The share of international flights is 30% of its Available Seat Kilometres or ASK rate. Of this, 45% comprises flights to or through West Asia.
The company indicated that more than 500 flights to West Asia and select long-haul destinations (including Istanbul, Athens, Manchester, and Amsterdam) were cancelled between 28 February 2026 and 03 March 2026, due to airspace restrictions. With the conflict persisting, cancellations have been extended through 4 to 6 March, 2026, with 130–140 flights cancelled daily.
Emkay raises the red flag, cites near-term risks
If current trends persist, ATF prices for April 2026 may rise by more than 40%, although the extent of pass-through by OMCs remains uncertain. “While near-term visibility on the conflict remains limited, the strategic importance of West Asia energy flows to global markets could accelerate a resolution, in our view,” said Emkay Global.
However, the brokerage house maintained its positive stance on the stock, iterating a target price of Rs 6,300, which looks at an upside of 43.1%. Also, the broker maintained its ‘Buy’ rating on the stock.
IndiGo share price performance
In the last five trading sessions, the stock price of IndiGo has fallen 4%. The stock has dro[[ed over 16% in the past one month and more than 26% in the last six months. IndiGo’s stock price has declined 10.35% over the previous one year.
IndiGo Q3FY26 results
The parent company of IndiGo reported a consolidated net profit of Rs 549.8 crore, plunging 77.5% year-over-year in Q3 FY26, compared with Rs 2,448.8 crore posted in the same quarter a year ago. The company said that the net profit was affected by new labour codes and the significant operational disruption faced in December 2025.
The low cost carrier’s revenue from operations came in at Rs 23,472 crore, a rise of 6% YoY to for the quarter under review.