Aviation stocks rally as border tensions ease; IndiGo, SpiceJet surge up to 10%

Shares of domestic carrier InterGlobe Aviation -owned IndiGo and SpiceJet witnessed sharp buying on Monday, rising up to 10% in opening trade, in sync with a strong broader market. The benchmark indices, the BSE Sensex and the NSE Nifty, rose over 2% each in opening trade amid easing of India-Pakistan tensions after a ceasefire announcement.

Shares of IndiGo’s parent InterGlobe Aviation rose as much as 9.8% to ₹5,599 in opening trade on the BSE. The market capitalisation of India’s most valued aviation company rose to ₹2.1 lakh crore.  

In a similar trend, SpiceJet shares jumped 10% to ₹47.52, while its market cap increased to ₹6,085 crore.

Aviation stocks saw a surge in buying even after the Airports Authority of India (AAI) and relevant aviation authorities on Sunday announced the temporary closure of 32 airports across northern and western India for all civilian flight operations until May 15. The decision was taken due to "evolving airspace conditions" amid escalated tensions between India and Pakistan after ‘Operation Sindoor’, a coordinated military operation conducted by the Indian Armed Forces in response to the terrorist attack in Pahalgam on April 22, 2025.

32 airports to remain shut

The Indian government on Sunday announced suspension of flight operations at 32 airports until May 15. However, operations at Delhi airport continues to remain normal, though some flights may be affected due to "evolving airspace conditions".

The list includes Adhampur, Ambala, Amritsar, Awantipur, Bathinda, Bhuj, Bikaner, Chandigarh, Halwara, Hindon, Jaisalmer, Jammu, Jamnagar, Jodhpur, and Kandla.

The other affected airports are Kangra (Gaggal), Keshod, Kishangarh, Kullu Manali (Bhuntar), Leh, Ludhiana, Mundra, Naliya, Pathankot, Patiala, Porbandar, Rajkot (Hirasar), Sarsawa, Shimla, Srinagar, Thoise, and Uttarlai.

AAI has also extended the temporary closure of 25 segments of Air Traffic Service (ATS) routes within the Delhi and Mumbai Flight Information Regions (FIRs) due to operational reasons. 

Airlines and flight operators have been advised to plan alternate routings according to current air traffic advisories. The temporary closure is being managed in coordination with relevant ATC units to ensure safety and minimise disruption, the Ministry of Civil Aviation said in a release.

Meanwhile, domestic carriers Air India, IndiGo, SpiceJet, and Akasa Air have advised passengers to arrive early to accommodate potential delays at security checkpoints. They have also been directed to stay informed and check flight status via their respective airlines or the official website.

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