IndiGo shares fall for fourth straight day as airspace restrictions persist due to US-Iran war

Shares of InterGlobe Aviation Ltd., the parent company that operates IndiGo Airlines, declined 5% on Wednesday, February 4, as the aviation sector continues to be impacted due to the US-Iran war. This is the fourth straight day of losses for the stock, during which it has declined 13%.IndiGo, in an exchange filing on Wednesday, said over 500 flights to the Middle East and select international destinations have been cancelled between February 28, 2026 and March 3, 2026.

It said it continues to closely monitor the revenue environment arising from the situation.
“Our operational teams are continuously assessing the evolving regional developments, recalibrating flight schedules, and planning repatriation operations in coordination with relevant authorities in India and the respective international jurisdictions, with the objective of minimising disruption to passengers,” it said.Meanwhile, brokerage firm HSBC said geopolitical tensions have forced Indian carriers to cancel flights to the Gulf region and some part of Europe. As much as 20% of IndiGo’s capacity, 32% of SpiceJet and over 40% of Air India’s capacity could be affected, it said.

Apart from direct losses due to cancellations, any spike in oil prices could also impact profitability, HSBC said.

Brokerage firm Motilal Oswal said IndiGo’s market share decline in February to 63.6% from 59.6% in the previous month, but was up from 65.2% in the year-ago period, following the surrender of flight slots due to the implementation of FDTL.

Shares of IndiGo are currently trading 4.6% lower on Wednesday at ₹4,310.4. The stock remains among the top losers on the Nifty 50 index.

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