Middle East Tensions Rattle Airline Stocks and Travel Sector

Airline stocks and travel-related companies faced a significant downturn on Monday due to rising Middle East tensions. InterGlobe Aviation's shares fell 6.25%, while SpiceJet's dropped 5.72%. The disruptions also heavily impacted companies such as Yatra Online, Easy Trip Planners, and Thomas Cook.

The equity markets reflected this turmoil, with the BSE Sensex crashing 2,743.46 points or 3.37% in early trading. Despite a slight recovery, it ended the day down 1,048.34 points or 1.29%. The NSE Nifty mirrored this decline, closing 1.24% lower after a tumultuous trading session.

The global oil benchmark, Brent crude, surged 7.75% due to the conflicts involving Israel, the US, and Iran, resulting in airspace closures across the Middle East. This led to a wave of booking cancellations and rescheduling requests, particularly affecting routes connecting India with Europe. The aviation sector also saw profit-taking amid concerns over increased ATF prices.