Shares of InterGlobe Aviation Ltd (IndiGo) gained 4 per cent in Monday's trade as crude oil prices fell nearly 5 per cent on US-Iran deal. To recall, the escalation of geopolitical conflict in the Middle East has led to several route disruptions and a sharp increase in jet fuel prices. In response, airlines globally — including IndiGo took certain short-term measures to protect operational viability.

The stock rose 3.65 per cent to hit a high of Rs 4,880.60 on BSE.

In its earnings call on May 29, IndiGo had noted that benchmark jet fuel prices spiked significantly over the past three months, materially impacting operating economics across markets. On the domestic front of its operations, the supportive and timely intervention by the government and the oil marketing companies and airports led to significantly soften and partially pass on the impact of global fuel price increases. "Not only did this enable us to calibrate our fuel charge but also allowed us to respond to cost pressures in a prudent manner," IndiGo said earlier.

For a large part of its IndiGo business, there is a natural lag in the reflection of fuel price movements. Aviation turbine fuel prices are notified by the oil marketing companies on the first of each month, based on prevailing international fuel price indices and currency movements of the last month. 

As a result, changes in global fuel prices tend to flow through our fuel CASK with a roughly one‑month lag, rather than on a real‑time basis. 

For the March quarter, Middle East introduced fresh disruptions through airspace constraints, network challenges and selective travel deferrals.

"With this background both our capacity deployed and demand were impacted. Against a seat growth of around 5 per cent our passengers grew by around 4 per cent, and we clocked an ASK growth of 9.5 per ecnt with an RPK growth of 7.5 per cent. Despite these challenges, we did serve more than 123 million passengers in FY 2026, the highest ever," IndiGo said on May 29.