Last Updated:June 12, 2025, 15:54 IST
Aviation stocks came under pressure following reports of a major plane crash near Ahmedabad’s Sardar Vallabhbhai Patel International Airport
Aviation Stocks Crash
Air India Plane Crash: Aviation stocks came under sharp pressure on June 12 following reports of a major plane crash near Ahmedabad’s Sardar Vallabhbhai Patel International Airport. Shares of IndiGo dropped 3% to trade at Rs 5,465, while SpiceJet slipped 1.5% in afternoon trade. The broader market sentiment toward airline stocks weakened amid growing concerns around flight safety.
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According to early reports, a London-bound Air India flight (AI171) carrying 242 passengers crashed shortly after takeoff. The aircraft reportedly went down in a densely populated area near the airport, striking a residential building. Eyewitnesses and visuals from the site show thick plumes of smoke rising from the crash site, with local residents rushing to assist in rescue efforts.
Following the incident, Air India confirmed on X (formerly Twitter): “Flight AI171, operating Ahmedabad-London Gatwick, was involved in an incident today, 12 June 2025. At this moment, we are ascertaining the details and will share further updates at the earliest.”
The crash has triggered fresh concerns around aviation safety, which analysts believe contributed to the steep fall in airline stock prices. While neither IndiGo nor SpiceJet was involved in the crash, investors reacted cautiously given the potential for increased regulatory oversight and short-term demand impact on air travel.
Shares of Adani Enterprises, which operates the Ahmedabad airport, also fell nearly 1% following the crash. The Adani Group has managed operations at the airport since 2020.
Meanwhile, Gujarat Chief Minister Bhupendra Patel rushed to the crash site to take stock of the situation. Union Home Minister Amit Shah is reported to have held a conversation with Patel regarding the incident. The central government has assured full support for rescue and recovery efforts, according to IANS.
The impact of the tragedy was also felt globally. Boeing shares plunged over 5% in pre-market trading on the New York Stock Exchange (NYSE), as the aircraft involved in the crash is suspected to be a Boeing model, though official confirmation is awaited.
The incident has cast a shadow over the aviation sector, with further developments likely to influence market movements in the coming sessions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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