Middle East conflict drags down tourism , aviation shares : IndiGo falls almost 7 %, Ixigo down 14 %

timesofindia.indiatimes.com · Mar 2, 2026 · Collected from GDELT

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Aviation and travel stocks were struggling with sharp sell-offs on Monday after Middle East conflict intensified and regional air traffic was disrupted. Shares of InterGlobe Aviation, which operates IndiGo, along with SpiceJet, Ixigo and Easy Trip Planners, dropped by up to 13.5% as multiple countries shut their airspace following US and Israeli strikes on Iran. InterGlobe Aviation fell as much as 7.5% during the session, touching a low of Rs 4,460 on the BSE before recovering to 4,540 around 1:00 pm. SpiceJet declined over 7% to 14.84 per share. Ixigo also added to the downward momentum, plunging 13.5% to Rs 147 before easing to 164. Easy Trip Planners slipped up to 9% to an intraday low of Rs 7.8. As the situation continues to intensify, aviation giant IndiGo has suspended all flights to and from the Middle East, calling the move precautionary. Israel attacks IranIranian state media claims US fighter jet downed in Kuwait; explosions in Bahrain, Dubai, DohaMHA alerts states as Middle East tensions soar; internet curbs, security tightened in KashmirIsrael bombs Hezbollah targets in Beirut; Gulf nations vow to defend themselves — key pointsIn its passenger advisory, the airline said, "In an endeavour to provide support to our customers, we are extending full flexibility and waivers for travel to/from the Middle East and select international sectors until 7 March 2026, applicable to bookings made on or before 28 February 2026. Customers may opt for a full refund or reschedule at no additional cost.” Air travel across the Gulf region faced major disruption as key hubs, including Dubai, the world’s busiest international airport hub, as well as Abu Dhabi in the United Arab Emirates and Doha in Qatar, were either closed or functioning under heavy restrictions due to widespread airspace shutdowns. The situation intensified after Iran’s attacks reportedly caused damage at Dubai International Airport, while facilities in Abu Dhabi and Kuwait were also struck. Flight-tracking platform FlightAware indicated that thousands of flights across the Middle East have been affected. As the conflict unfolded on Saturday, at least eight countries, Iran, Israel, Iraq, Jordan, Qatar, Bahrain, Kuwait and the United Arab Emirates, announced complete airspace closures. Syria separately said it would shut part of its southern airspace along the border with Israel. The developments are seen weighing on the travel and tourism sector, as widespread rerouting, cancellations and operational disruptions typically push up airline costs, particularly fuel and crew expenses. At the same time, heightened geopolitical uncertainty risks dampening travel demand through booking cancellations and slower fresh reservations, clouding near-term revenue visibility for companies in the sector.