June 12 — Airline stocks suffered sharp losses on Thursday afternoon after an Air India aircraft crashed in Ahmedabad, prompting concerns over aviation safety and rattling investor sentiment.
Shares of Air India’s parent company, TAAL, fell by 3.53% to ₹3,566, while IndiGo dropped 3% to ₹5,465 and SpiceJet slipped 1.5%, as the market reacted to the tragic incident.
According to early reports, Flight AI171, operating between Ahmedabad and London Gatwick, encountered technical issues shortly after takeoff. The aircraft reportedly lost control and crashed into a residential neighborhood, striking a building and triggering a massive fire.
Chairman Chandrasekaran Issues Statement
Air India Chairman Natarajan Chandrasekaran confirmed the incident and expressed sorrow over the loss of lives. In a statement, he said:
“With profound sorrow I confirm that Air India Flight 171 operating Ahmedabad–London Gatwick was involved in a tragic accident today. Our thoughts and deepest condolences are with the families and loved ones of all those affected by this devastating event. At this moment, our primary focus is on supporting all the affected people and their families. We are doing everything in our power to assist the emergency response teams at the site and provide all necessary support and care.”
Investor Sentiment Hit Amid Safety Concerns
Market analysts noted that aviation stocks often see immediate declines following major incidents, as investors factor in potential reputational damage, regulatory scrutiny, and future operational disruptions. The crash is expected to spark renewed debates around aviation safety protocols in India.Authorities are currently investigating the cause of the crash. Emergency services remain on the scene, and further updates are awaited.