IndiGo shares fall 5% on over 500 flight cancellations in last four days amid West Asia conflict

This comes as the aviation company cancelled more than 500 flights to the Middle East and select international destinations between February 28 and March 3 amid the escalating hostilities in West Asia.

The stock was trading 3.24% lower at ₹4,373.90 per equity share at around 1:59 PM.

The scrip has declined more than 12% in the past week and nearly 13% over the month. On a year-to-date basis, it has lost 15%.

Why are IndiGo shares falling?

In a regulatory filing today, IndiGo said it had to cancel over 500 flights to the Middle East and select international destinations between February 28 and March 3, 2026, due to the evolving airspace restrictions over Iran and the Middle East.

“We continue to closely monitor the revenue environment arising from this situation,” it noted.

The passenger carrier stated that its operational teams will continue to assess the evolving regional developments.

It added that it will recalibrate flight schedules and plan repatriation operations in coordination with relevant authorities in India and the respective international jurisdictions, “with the objective of minimising disruption to passengers.”

IndiGo resumes Jeddah flights

In a separate statement, IndiGo said that it would operate four dedicated flights from Jeddah to Mumbai, Hyderabad, and Ahmedabad on March 3, as a part of its efforts to normalise operations.

Over the weekend, the United States and Israel launched an attack on Iran, which led to the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. In response, Iran launched a wave of missile and drone strikes across the Middle East, targeting countries hosting US military assets, including Bahrain, Kuwait, Qatar, and the United Arab Emirates.

The escalating hostilities in the region have led to flight cancellations and airspace closures.

Oil prices

Aviation stocks are largely sensitive to an increase in oil prices, as aircraft fuel and oil account for a substantial 28.7% of total airline costs, according to WATS.

ICE Brent Crude futures for May delivery surged as much as 3.5% to a 52-week high of $84.25 per barrel on March 4, amid rising risks of a major supply shock to global oil markets, as exports from Iraq and Kuwait could begin shutting down within days if the Strait of Hormuz remains closed, analysts and officials have warned.

Furthermore, airlines are rerouting their flights away from Middle East airspaces, which is one of the busiest aviation crossroads in the world. This will add hours to the flight and consume additional fuel, as per news reports.

InterGlobe Aviation has a total market capitalisation of ₹1.69 lakh crore, as of March 4, 2026, according to data on the NSE.