500+ Flights Cancelled, InterGlobe Aviation Drops Over 4%; Nifty India Tourism Index Falls Over 2% Amid Middle East Tensions

On Wednesday, shares of InterGlobe Aviation Limited fell 4.26 per cent to Rs 4,327.70 per share from its previous closing of Rs 4,520.40 per share. The stock’s 52-week high is Rs 6,232.50 per share and its 52-week low is Rs 4,267.55 per share. During the session, the stock rose 1.97 per cent to its Intraday high of Rs 4,409.50 from the previous close.

Shares of Indian tourism companies plunged on Monday, March 2, as escalating hostilities in the Middle East rattled investor sentiment. The Nifty India Tourism Index declined more than 2 per cent during the trading session, reflecting concerns over flight disruptions and rising crude oil prices.

In view of evolving airspace restrictions over Iran and the Middle East, more than 500 flights to the Middle East and select international destinations were cancelled between February 28, 2026 and March 3, 2026. Airlines said they are closely monitoring the revenue environment arising from the situation. Operational teams are assessing regional developments, recalibrating flight schedules, and planning repatriation operations in coordination with authorities in India and international jurisdictions to minimise passenger disruption.

Aviation stocks such as InterGlobe Aviation Limited and SpiceJet declined sharply. Hotel stocks including Indian Hotels Company Limited and Chalet Hotels Limited also traded lower. Travel booking platforms such as Yatra Online, Inc. and Le Travenues Technology Limited were in the red on the National Stock Exchange (NSE).

Why Have Tourism Stocks Declined?

Over the weekend, the U.S. and Israel launched attacks on Iran, leading to the death of Iran’s Supreme Leader, Ali Khamenei. In retaliation, Iran targeted U.S. and Israeli airbases across West Asia. Israel subsequently launched fresh strikes on Tehran, with Iran responding through additional missile barrages.

The escalating conflict has led to widespread flight cancellations and airspace closures. Major aviation hubs, including Dubai International Airport, along with Kuwait’s main airport and Abu Dhabi Airport, remained closed, leaving over ten thousand passengers stranded.

IndiGo announced it would suspend flights to and from the Middle East due to airport closures and regional instability. The airline also cancelled several services to Europe and the UK.

Oil Price Surge Adds Pressure

Aviation stocks are highly sensitive to oil price movements, as aircraft fuel accounts for nearly 28.7 per cent of total airline costs, according to WATS.

ICE Brent Crude futures for May delivery surged as much as 13.03 per cent to a 52-week high of USD 82.37 per barrel amid geopolitical tensions in the Middle East, raising concerns over higher operating costs for airlines.

InterGlobe Aviation has a market capitalisation of over Rs 1,67,225.50 crore. The stock has delivered returns of 131.92 per cent over the last three years.

Disclaimer: The article is for informational purposes only and not investment advice.