IndiGo, ixigo, RVNL: Airline, rail, tourism stocks decline up to 8% on travel disruption as Iran conflict rages

Airline shares see profit booking in trade. 

• Aviation and travel stocks drop up to 8% due to West Asia unrest.
• SpiceJet and IndiGo extended flight cancellations to West Asia.
• Railway stocks dropped on concerns over travel disruptions.

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Shares of aviation, travel and railway-linked companies fell by up to 8 percent on Monday amid flight disruptions following the escalating conflict involving Iran.

The decline comes after several domestic carriers extended cancellations of flights to and from West Asia due to airspace restrictions in the region after military action by the US and Israel against Iran.

On the BSE, shares of SpiceJet dropped over 8 percent to Rs 14.72 per share. The stock opened 4.79 percent lower and extended losses during the session, snapping a three-day gaining streak. The airline cancelled all inbound and outbound flights to West Asia till Tuesday.

"Passengers are advised to check their flight status before proceeding to the airport," the company said in an advisory posted on social media platform X.

Shares of InterGlobe Aviation, the parent of IndiGo, declined nearly 7 percent to Rs 4,500 per share on the NSE. The stock opened 6.78 percent lower and has been under pressure for the past three sessions.

"In view of the prevailing situation, the temporary suspension of select international flights that use Middle East airspace has been extended until March 2, 2026, 2359 hrs IST," the airline said in a post on X. The carrier said it is offering waivers for travel to and from West Asia and other affected international sectors for bookings made on or before last Saturday. Passengers can opt for a full refund or reschedule without additional charges, it added.

Tourism stocks also declined as shares of Ixigo fell more than 5 percent to Rs 161.59 apiece on the NSE. India Tourism Development Corp fell 5 percent to Rs 499.80 per share. Easy Trip Planners stock was down 8 percent to Rs 7.94 per share on the NSE.

Railway-related stocks also traded lower amid concerns that prolonged disruptions in air travel could impact passenger movement and last-mile connectivity. Shares of Rail Vikas Nigam Ltd dropped to its fresh 52-week low at Rs 295.20 per share, down 6.69 percent.

Shares of Indian Railways Finance Corporation (IRFC) are down 5 percent. The decline was also due to a tepid response to this Offer For Sale (OFS).

Several airlines had earlier suspended operations to parts of West Asia till Sunday following the military operations and subsequent developments over the weekend.

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