.png){kind=logo}
Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, declined sharply on Monday, March 9, 2026, as rising crude oil prices and geopolitical tensions in the Middle East triggered concerns about higher operating costs for airlines. The aviation stock fell nearly 8% intraday to around Rs. 4,045, extending its recent losing streak.
The stock opened at Rs. 4,150, significantly lower than the previous close of Rs. 4,404 on Friday, March 6, 2026. The decline also follows a 2.41% fall recorded on the same day, indicating continued selling pressure.
A key factor in the decline of IndiGo's stock price is rising crude oil prices that recently increased above $100 per barrel, its highest level since mid-2022.
The price increase occurs amid a period of growing geopolitical conflicts between the United States and Iran, raising concerns about potential supply disruptions.
Fuel costs are a critical factor for airlines, accounting for around 40% of the total operating cost. Analysts highlight that IndiGo remains particularly sensitive to fluctuations in crude oil prices due to its relatively limited hedging strategy.
JM Financial, a brokerage firm, reports that every $5 increase in Brent crude prices will reduce IndiGo's earnings by approximately 13%.
The company also faces operational challenges due to escalating tensions between the US and Iran. The airline confirmed that over 500 flights to the Middle East and other international destinations were cancelled between February 28 and March 3, 2026.
Market experts note that disruptions in the Middle East will impact approximately 18% of IndiGo's available seat kilometers, which creates additional uncertainty about the airline's upcoming financial performance.
Also Read: US Gas Prices Surge as Oil Rally Pushes Fuel Costs Higher Nationwide
Despite the recent decline, Kotak Institutional Equities upgraded the stock to a "Buy" rating with a target price of Rs. 5,500, indicating potential gains if fuel prices remain stable.
Crisil maintained IndiGo's bank facility ratings at AA-/A1+ with a positive outlook, citing IndiGo's strong liquidity, operational recovery, and its position as one of the leading airlines in the market.
IndiGo shares have declined over 11% in March 2026 so far and are down roughly 18% over the past month. On a year-to-date basis, the stock has fallen around 20%.
Despite the recent weakness, the stock has delivered 119% returns over the past three years and 142% gains in the last five years. The stock recently touched a 52-week low of Rs. 4,035 on March 9, 2026, compared to its 52-week high of Rs. 6,232.50 recorded on August 18, 2025.
