InterGlobe Aviation, the parent of IndiGo, dropped 6.30%, while SpiceJet declined 5.35% amid concerns over rising operational challenges.
The conflict involving Israel, the United States and Iran has led to multiple airspace shutdowns across the Middle East, significantly affecting international flight routes, particularly those connecting India to Europe via major Gulf hubs.
At the same time, a spike in global crude oil prices has added to investor worries, as higher fuel costs directly impact airline profitability.
The Indian Association of Tour Operators reported a noticeable increase in booking cancellations and rescheduling requests on Sunday, citing disruptions caused by airspace restrictions.
The ongoing crisis has heightened uncertainty for the aviation sector, with investors factoring in the dual impact of disrupted routes and elevated fuel expenses.