Aviation Stocks Crash: Indian Airlines panic due to Middle East crisis, SpiceJet and IndiGo shares fell by 14%

News India Live, Digital Desk: As the situation in the Middle East is becoming serious, there is an atmosphere of fear among investors. Shares of aviation companies have taken a dive in today’s trading session, due to which investors have lost crores of rupees.1. How much did the shares fall? Heavy selling pressure was seen in aviation stocks as soon as the market opened today: SpiceJet: SpiceJet shares were hit the most, falling by about 14%. The company is already struggling with a shortage of funds, and now geopolitical tensions have increased the problems. IndiGo (InterGlobe Aviation): Shares of India’s largest airline IndiGo also fell by 5% to 8%. Air India (Tata Group): Although Air India is not listed, other related stocks of Tata Group have also seen pressure.2. 3 main reasons for the decline (Key Reasons) It is like a ‘triple kill’ for Indian Airlines: Rising prices of Crude Oil: Due to the fear of stopping the supply of oil in case of war, the prices of Brent crude are skyrocketing. Air turbine fuel (ATF) accounts for about 40% of the total expenditure of airlines. Cost of oil means less profit for airlines. Route Diversion (Flight Rerouting): Due to the airspace of Iran and Israel being closed or unsafe, flights have to fly through long routes. This has increased fuel consumption and caused a huge increase in operational costs. Flight Cancellation: Due to security reasons, flights to many cities in the Middle East (such as Tel Aviv, Tehran, Beirut) have had to be canceled, causing direct loss of revenue.3. Expert Opinion for Investors Market experts believe that unless the tension in the Middle East subsides, volatility will remain in aviation stocks. Long-term View: Long-term investors should adopt the policy of ‘Wait and Watch’ for now. Impact on Fares: International and domestic airfares may increase by 10% to 15% in the coming days, as airlines will bear the burden of increased fuel expenses. Can put it on the passengers. Condition of global markets: Not only India, but aviation stocks of America and Europe are also trading in the red. The surge in gold prices and the rise in oil prices have issued a ‘red flag’ for the global economy.