A deadly Air India crash rocks aviation sector

An Air India Dreamliner crashed after takeoff from Ahmedabad, killing all 241 onboard and triggering widespread alarm across the aviation industry.

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IndiGo and SpiceJet stocks nosedive

Investor sentiment soured as shares of IndiGo fell 6% and SpiceJet dropped 5.5% on June 13, reflecting panic across Indian markets.

Merged Image source: By BriYYZ from Toronto, Canada - IndiGo Airbus A320neo F-WWDG (to VT-ITI), CC BY-SA 2.0, Md Shaifuzzaman Ayon, CC BY-SA 4.0 https://commons.wikimedia.org

Crash sparks safety and operational fears

The crash has raised serious concerns about airline safety protocols, leading to uncertainty for operators and regulators alike.

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Fueling the fire: oil prices surge 10%

On the same day, Brent and WTI crude prices spiked due to escalating Middle East tensions, compounding pressure on aviation costs.

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What triggered the oil shock?

Israeli airstrikes on Iran’s capital sparked fears of prolonged conflict and possible disruptions in oil supply via the Strait of Hormuz.

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Why fuel costs hit airlines so hard

Aviation turbine fuel (ATF) forms a major part of airline expenses. Rising oil prices mean thinner margins for Indian carriers.

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Double whammy for airline investors

The combined blow of a fatal crash and spiking fuel costs has shaken investor confidence in Indian aviation stocks.

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Short-term outlook: turbulence ahead

Market analysts expect continued volatility in airline stocks if geopolitical and cost pressures persist.

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How authorities are responding

Regulators have launched investigations, and safety audits are underway to assess risks and restore confidence.

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What investors should watch next

Keep an eye on oil trends, safety findings, and policy updates — the next few weeks are crucial for the aviation sector’s direction.

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