An Air India flight crash near Ahmedabad sent shockwaves through the market on June 12. Shares of major Indian carriers IndiGo and SpiceJet tumbled in afternoon trade. IndiGo dropped nearly 3% to ₹5,465, while SpiceJet fell 1.5%.
Adani Enterprises, which operates the Sardar Vallabhbhai Patel International Airport, also saw a dip of nearly 1% as panic swept through aviation-related stocks.
A tragedy in the skies—felt on the ground
The crash involved Flight AI171, bound for London Gatwick. It went down shortly after takeoff from Ahmedabad airport, with 242 passengers on board. Early reports say the aircraft crashed into a residential area near the airport, colliding with a building.
Locals rushed to the scene, helping rescue teams pull people from the debris. In the chaos, fear and shock gripped not only the neighborhood—but investors too.
This isn’t just about numbers on a screen. It’s about safety. And when that feels threatened, the markets react fast.
What does this mean for you and me?
For most of us, this is more than a breaking news alert. It hits where we travel, how we trust airlines, and where we invest.
Airline stocks are known to be sensitive—fuel prices go up, stocks dip. A crash? That’s full-blown turbulence.
People might rethink flying in the short term. Investors might pull out. And the aviation sector, already juggling rising costs and demand pressure, just got a storm cloud overhead.
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Government responds, markets still shaken
Gujarat CM Bhupendra Patel immediately flew to Ahmedabad to take stock of the situation. Union Home Minister Amit Shah also held discussions with Patel and promised full support from the Centre, according to IANS.
Meanwhile, Air India posted on X:
“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.”
Even Boeing, which has already had a rough year in the headlines, saw its shares slide over 5% in pre-market US trading.
The crash hit three sets of stocks—Air India by association, domestic carriers like IndiGo and SpiceJet due to fear contagion, and infrastructure operators like Adani Enterprises. Even Boeing wasn’t spared.
If you’re wondering why the market overreacts so fast—remember, it’s not just emotion. It’s algorithms, news wires, and sentiment hitting “sell” all at once.
And that’s the bitter irony: While families are still awaiting word on their loved ones, the market has already moved on to the next headline.
Also Read ‘Mayday call to ATC…’ Inside the Crash of Air India’s London-Bound Flight in Ahmedabad
