Air India Flight Crash in Ahmedabad: IndiGo and SpiceJet Shares Plunge

Airline stocks witnessed a sharp drop during afternoon trading hours on June 12, following the crash of a London-bound Air India flight shortly after takeoff from Sardar Vallabhbhai Patel International Airport in Ahmedabad, Gujarat.

According to initial reports, the aircraft was carrying 242 passengers and crashed into a densely populated area near the airport moments after takeoff. The plane reportedly hit a building, causing a massive explosion and fire. Eyewitnesses said thick plumes of smoke were seen rising from the crash site, and visuals released by PTI confirm a large smoke trail in the area. Residents immediately rushed to the scene to assist in rescue operations.

The incident triggered panic among investors, leading to a steep fall in aviation-related stocks. IndiGo shares dropped nearly 3% to trade at ₹5,465, while SpiceJet saw a decline of 1.5%.

Fears over air travel safety may have contributed to the selloff in airline stocks. Market sentiment was further impacted as Adani Enterprises — the operator of Ahmedabad airport — also saw its shares slip by nearly 1% post the incident.

Authorities have yet to release a full statement on the cause of the crash. Rescue and emergency services are actively involved in managing the situation and aiding survivors.

More details are awaited.