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The gains came after Brent crude dropped nearly 5% to around $83 per barrel as investors welcomed signs of easing tensions in the Middle East and the potential reopening of the Strait of Hormuz, a key global oil transit route.
Market sentiment improved after US President Donald Trump announced that a peace deal with Iran had been completed. The agreement is expected to lead to the reopening of the Strait of Hormuz, through which nearly one-fifth of global oil shipments pass. Reports indicate that the deal could be formally signed later this week.
Lower crude prices are generally positive for airlines as aviation turbine fuel (ATF) is one of their largest operating expenses. A decline in oil prices can help reduce fuel costs and support profit margins, particularly for carriers with significant domestic and international operations.
Travel and tourism-related stocks also witnessed buying interest. Investors expect improved stability in global energy markets and lower fuel costs to support demand and profitability across the sector.
Brent crude rose 4.54% to $97.32 per barrel after reports indicated that Israel had struck military targets in Iran following missile attacks by the Islamic Republic.
The increase in crude oil prices weighed on investor sentiment toward airline stocks, as aviation turbine fuel is one of the largest operating costs for carriers. Higher fuel prices can increase operating expenses and potentially impact profitability.
The company has suspended operations to Langkawi, Krabi, Ho Chi Minh, Hong Kong and Shanghai starting 1 July 2026, and Siem Reap starting 3 July 2026, until 30 September 2026.
“IndiGo will resume bookings for all the impacted services starting 1 October 2026; however, should the environment become favourable, IndiGo stands prepared to reinstate these services earlier than scheduled, in appropriate lead time,” the company said in a statement.
The airline further said that it has managed to retain majority of its international operations, i.e. over 1,800 weekly international flights, despite this realignment.
These measured changes are designed to align capacity with current market conditions and demand trends, while ensuring the airline maintains reliability and network integrity across its global destinations.
The airline will continue to monitor the situation given the elevated operating costs and continued airspace restrictions.
InterGlobe Aviation (IndiGo) is among the fastest-growing low-cost carriers in the world. It had a fleet of 441 aircraft and provided scheduled services to 97 domestic and 45 international destinations as of 31st March 2026.
The company had reported a consolidated net loss of Rs 2,536.9 crore in Q4 FY26, compared with a net profit of Rs 3,067.5 crore posted in Q4 FY25. Revenue from operations increased 1.29% to Rs 22,438.4 crore in Q4 March 2026.
The scrip rose 0.26% to currently trade at Rs 4514.70 on the BSE.
For the full year,net loss reported to Rs 2391.90 crore in the year ended March 2026 as against net profit of Rs 7258.40 crore during the previous year ended March 2025. Sales rose 5.15% to Rs 84961.90 crore in the year ended March 2026 as against Rs 80802.90 crore during the previous year ended March 2025.
EBITDAR excluding the forex impact of Rs 6,435.4 crore in Q4 FY26, registering the de-growth of 6.21% compared with Rs 6,861.8 crore in Q4 FY25. EBITDAR margin excluding the forex impact stood at 28.7% in Q4 FY26 as against 31% in Q4 FY25.
For Q4 FY26, IndiGo reported a 3.4% increase in capacity to 43.6 billion ASKs on a consolidated basis, despite disruptions arising from the ongoing Middle East conflict. Passenger numbers declined marginally by 1.1% to 31.6 million during the quarter. Yield fell by 2.2% to Rs 5.20, while load factor decreased by 1.7% points to 85.8% compared to the same period last year.
IndiGo had a total cash balance of Rs 51,650.6 crore, comprising Rs 36,216.3 crore of free cash and Rs 15,434.3 crore of restricted cash.
However, despite continuing external disruptions, during the year ended March 2026, IndiGo said it has expanded its operations, with capacity increasing by 9.5% YoY and total income growing by 6.4% to Rs 89,513.4 crore.
Exceptionally sharp rupee depreciation, changes in labour laws and a challenging operating environment offset the operational profit, and the company reported a net loss of Rs 2,393.6 crore.
The airline said it expects capacity, measured in ASKs, to grow by around 3–4% in the first quarter of FY27 compared with the corresponding quarter of FY26.
Rahul Bhatia, MD, said, “FY26 was marked by an exceptionally challenging operating environment, which materially impacted our profitability. Despite these conditions, the underlying performance of the business remained resilient. During the year, our capacity grew by 9.5% and total income increased by over 6%. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of Rs 75 billion.
We continue to maintain a strong balance sheet with substantial liquidity, demonstrating resilience through prolonged periods of volatility. I would like to thank our 123 million customers for placing their trust in us, and our 69,000 dedicated IndiGo team members for their extraordinary professionalism. While the near term remains volatile, we remain firmly focused on disciplined execution, cost efficiency, and long-term value creation.”
Shares of InterGlobe Aviation fell 3.28% to close at Rs 4,420 on the NSE.
The selling pressure came as investors assessed the possible impact of lower outbound travel demand and rising fuel costs on airline profitability.
Speaking at an event in Secunderabad, Telangana, Modi urged people to defer overseas vacations, destination weddings and foreign travel for at least one year. He also called for reduced fuel consumption through greater use of metro rail, carpooling and electric vehicles.
The Prime Minister further advocated wider adoption of work-from-home practices, online meetings and virtual conferences to help conserve fuel and foreign exchange reserves.
The decline in aviation stocks also reflected concerns over elevated crude oil prices amid the ongoing U.S.-Iran conflict. Higher crude prices are expected to increase aviation turbine fuel costs, a major expense component for airlines.
Investors also remained cautious over the potential impact of geopolitical tensions on inflation, India’s import bill and international travel demand.
The Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal on Tuesday, 5 May 2026. The government said the scheme would help businesses tackle short-term liquidity stress arising from the conflict.
Under the scheme, passenger airlines can avail additional credit support of up to 100% of peak working capital utilisation during Q4 FY26. The support is capped at Rs 1,500 crore per borrower. MSMEs and other eligible borrowers can avail up to 20% of peak working capital utilisation, capped at Rs 100 crore.
Civil Aviation Minister K. Rammohan Naidu said the move would help airlines manage liquidity challenges and maintain operations amid global disruptions.
According to the official release, the scheme is designed to protect jobs, support supply chains and maintain business continuity.
The loan tenor for airlines will be seven years, including a two-year moratorium. For MSMEs and other borrowers, the tenor will be five years with a one-year moratorium. The scheme will apply to loans sanctioned until 31 March 2027.