IndiGo, SpiceJet Shares Plunge After Air India Crash Near Ahmedabad Airport; Boeing Dips 5% Pre-Market

Ahmedabad, June 12, 2025: A tragic aircraft incident near Ahmedabad’s Sardar Vallabhbhai Patel International Airport on Thursday sent shockwaves through the aviation sector, leading to sharp declines in the share prices of major Indian airlines, including IndiGo and SpiceJet, as well as the aircraft manufacturer Boeing.

IndiGo shares dropped 3.32%, and closed at ₹5,444 with an intraday low of ₹5,418. SpiceJet shares also declined by 2.40% and closed the day at ₹44.40, reflecting investor concern about broader safety perceptions and operational disruptions in the aviation industry.

Air India Flight Crash Triggers Market Reaction

The incident involved Air India flight AI171, a Boeing 787-8 Dreamliner en route from Ahmedabad to London Gatwick with 242 passengers and crew on board. The aircraft reportedly crashed into a residential area in Meghani Nagar shortly after taking off from Runway 23 around 1:38 PM IST. Eyewitnesses reported hearing explosions and seeing thick plumes of smoke rising from the crash site, prompting immediate rescue efforts by local residents and emergency teams.

Air India confirmed the incident via X (formerly Twitter), stating, “Flight AI171… 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.” Initial reports indicate the aircraft issued a ‘MAYDAY’ call before losing contact with Air Traffic Control

Adani Enterprises and Boeing Also Affected

Adani Enterprises, which operates Ahmedabad Airport through its subsidiary Ahmedabad International Airport Limited (AIAL) since 2020, saw its stock fall by 1.75% to close the day at ₹2,536 amid fears of reputational damage and increased regulatory scrutiny.

Meanwhile, Boeing’s stock slumped over 5% in pre-market trading on the New York Stock Exchange, as the crash stoked fresh concerns around aircraft safety, though no official confirmation has been made regarding the aircraft’s make.

Government Responds to Crisis

Gujarat Chief Minister Bhupendra Patel rushed to the site to assess the situation, while Union Home Minister Amit Shah discussed the incident with Patel and assured central government support for rescue and relief operations.

An official statement by the Directorate General of Civil Aviation read: “Accident to M/s Air India B787 aircraft VT-ANB on 12.06.2025 at Ahmedabad on 12th Jun, 2025, M/s Air India B787 Aircraft VT-ANB while operating flight AI-171 from (Ahmedabad to Gatwick) has crashed immediately after takeoff from Ahmedabad. There were 242 people on board the aircraft, consisting of 2 pilots and 10 cabin crew. The aircraft was under the command of Capt Sumeet Sabharwal with First Officer Clive Kundar.

Capt Sumeet Sabharwal is an LTC with 8200 hours of experience. The copilot had 1100 hours of flying experience.

According to ATC, the aircraft departed from Ahmedabad at 1339 IST (0809 UTC) from Runway 23. It issued a MAYDAY Call to ATC, but thereafter, the aircraft did not respond to the calls made by ATC.

Aircraft immediately after departure from Runway 23, fell on the ground outside the airport perimeter. Heavy black smoke was seen coming from the accident site”.

What’s Ahead?

In the coming days, aviation stocks may remain under pressure due to heightened regulatory scrutiny and safety concerns following the crash. Boeing could face global backlash, especially if mechanical failure is confirmed. Passenger sentiment may weaken temporarily, impacting bookings along with the investors. The market awaits official DGCA findings for clarity.

The aviation industry, already sensitive to safety developments, is closely monitoring the unfolding investigation as more details emerge regarding the cause and consequences of the crash.

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