IndiGo Shares Decline 8% After Oil Prices Surged Over 25% - Key Details

The share price of IndiGo plummeted as much as 8% to hit an intraday low of Rs 4,045 in trade on Monday, falling consecutively amid soaring oil prices triggered by the supply chain disruptions amid the Israel-US-Iran war.

In March 2026, the low-cost carrier's shares have declined over 11%.

Key Trigger Behind Indigo Shares Downward Movement

Experts are of the view that surging crude oil prices have led to declining movement witnessed across aviation stocks. The crude oil prices have crossed over $100 a barrel, hitting a 52-week high, for the first time since oil market crisis in 2022.  

Brokerage house JM Financial noted that the ongoing geo-political climate induced rise in crude oil prices may risk the margin of this Gurgaon-headquartered airlines  

“For every USD5 increase in Brent price, Indigo’s earnings are expected to contract by ~13% as per our calculation,” the firm said in a note.

IndiGo share price has remained under pressure, falling over 7.8%, since the company suspended its flights to the Middle East.

Meanwhile, the passenger carrier airline has suspended its flights to and from the Middle East after geopolitical tensions escalated last week, post joint strikes by the United States and Israel on Iran that triggered retaliatory attacks across several countries in the region.

In an exchange filing, the company said, “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.

"We continue to closely monitor the revenue environment arising from this situation. Our 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, to minimise disruption to passengers.”

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“A swift de-escalation would likely see operations and bookings normalise quickly, but a prolonged disruption risks capacity rationalisation, margin compression, and estimate downgrades. We 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,” the brokerage noted.

As of 1:01 pm, the IndiGo share price was trading 4.09% lower at Rs 4,224.50 apiece.