Aviation stocks under pressure: IndiGo and SpiceJet decline up to 2.5% as Russia bans jet fuel exports

Shares of Indian aviation companies InterGlobe Aviation, the parent of IndiGo, and SpiceJet came under pressure on Tuesday, June 2, after reports emerged that Russia had imposed a ban on aviation fuel exports until November 30, 2026. The development weighed on investor sentiment, dragging aviation stocks lower during the trading session.

SpiceJet was the bigger loser among the two carriers, falling around 2.5% to an intraday low of ₹12.01 on the BSE. Shares of InterGlobe Aviation also declined, shedding more than 1% to hit an intraday low of ₹4,399.45.

The Russian government's decision is aimed at ensuring adequate fuel availability in the domestic market amid ongoing disruptions to the country's refining sector. According to Reuters, the Russian government said, “The aim of this decision is to ensure stability in the domestic fuel market.”

Russia had earlier restricted exports of jet fuel through the end of November in a bid to avoid domestic shortages after Ukraine intensified attacks on the country's oil refining infrastructure. The latest extension of the export ban highlights Moscow's continued efforts to prioritize local fuel supplies amid persistent challenges to its energy sector.

Drone Attacks Impact Russian Refining Operations

Reports indicated that the export restrictions are unlikely to have a major impact on international fuel markets. However, the move underscores the growing strain on Russia's refining industry, which has been grappling with repeated drone strikes.

According to reports, attacks on refineries have pushed Russia's crude-processing rate to its lowest level in more than 16 years. Ukraine has increasingly targeted Russian energy infrastructure, including refineries, sea ports and pipelines, as part of its broader strategy to reduce the flow of energy revenues into the Kremlin's coffers.

Despite the headline impact of the export ban, Russia is not a significant player in the global jet fuel market. Data compiled by Bloomberg from analytics firm Vortexa Ltd showed that Russia exported an average of 30,000 barrels of jet fuel per day last year, accounting for less than 2% of global supplies.

The data further revealed that average daily exports slipped to 28,000 barrels during the first four months of 2026. Turkey remained the primary buyer of Russian jet fuel during this period.

Nevertheless, the announcement triggered caution among investors in aviation stocks, as fuel costs remain one of the largest operating expenses for airlines. Any development linked to aviation fuel supply tends to be closely monitored by market participants, even when the direct impact on global supply is expected to be limited.

Aviation stocks' performance

The latest decline also adds to the recent weakness in SpiceJet shares. The stock has remained under pressure over multiple timeframes, falling 8% in the past one month, 19% in the last three months, 61% in six months and 72% over the past year.

InterGlobe Aviation has displayed relatively better resilience. IndiGo shares gained 3% during the last one month. However, the stock has still declined 2.2% over the past three months, 22% in six months and 17% over the last year.

While Russia's export restrictions are not expected to significantly disrupt global jet fuel supplies, the move has once again brought attention to geopolitical risks and their potential impact on airline operating costs, keeping aviation stocks firmly in the spotlight.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.