Russia's Jet Fuel Export Ban Weighs On Aviation Stocks; IndiGo, SpiceJet Shares Decline

Shares of Indian airline operators InterGlobe Aviation and SpiceJet traded lower on Tuesday after reports said Russia had extended restrictions on jet fuel exports until 30 November 2026.

The development weighed on sentiment across aviation counters, with investors closely monitoring developments linked to aviation turbine fuel (ATF) supply and pricing.

According to exchange data, SpiceJet shares fell to an intraday low of ₹12.00 on the BSE before trading at ₹12.20 at 3:20 PM IST, down 0.89% for the day. InterGlobe Aviation, the parent of IndiGo, touched an intraday low of ₹4,389.95 and was trading at ₹4,473.30 at 3:21 PM IST, down 0.45%.

The Russian government said the decision was aimed at maintaining stability in its domestic fuel market as the country continues to deal with disruptions in refining operations.

Why Are IndiGo And SpiceJet Shares Falling?

The immediate trigger was Russia's decision to keep restrictions on jet fuel exports in place until the end of November. Russian authorities said the move was intended to ensure adequate fuel availability in the domestic market amid ongoing disruptions to the country's refining sector.

The announcement has also drawn attention because fuel remains a major cost for airlines. Jet fuel typically accounts for nearly 40% of an airline's total operating expenses.

Russia may not be a major supplier of jet fuel globally, but developments linked to fuel availability are closely tracked by airline investors.

What Is Happening To Russia's Refining Sector?

The latest export curbs come at a time when Russia's refining operations are facing disruptions from repeated attacks on energy facilities.

Reports suggest repeated drone attacks have disrupted refinery operations across the country and 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 effort to curb energy revenues flowing into Russia.

The latest export ban extends earlier restrictions introduced to prevent domestic fuel shortages after refinery output was affected by attacks on energy infrastructure.

Despite the headline impact, Russia is not a major player in the global jet fuel market.

Data compiled by Bloomberg from analytics firm Vortexa showed Russia exported an average of 30,000 barrels of jet fuel per day last year, accounting for less than 2% of global supplies. Average daily exports declined further to around 28,000 barrels during the first four months of 2026, with Turkey remaining the largest buyer of Russian jet fuel.

How Have Aviation Stocks Performed Recently?

Tuesday's decline adds to an already weak run for SpiceJet shares. The stock has fallen around 8% over the past month, 19% over the last three months, 61% in six months and 72% over the past year.

InterGlobe Aviation has been relatively more resilient. IndiGo shares gained around 3% during the past month. However, the stock remains down 2.2% over three months, 22% in six months and 17% over the last year.

IndiGo's recent earnings have also remained under scrutiny. For the March 2026 quarter, the airline reported a consolidated loss of ₹2,536 crore, compared with a profit of ₹3,067.5 crore a year earlier. Much of the swing came from a ₹4,881.6 crore foreign-exchange loss linked to rupee depreciation.

Also Read - Foreign Investors’ Net Equity Investments In India Fall To Lowest Level Since 2016

Russia's latest move is not expected to materially alter global jet fuel availability. Even so, developments tied to aviation fuel continue to attract attention at airline counters, given their potential impact on operating expenses.

Sources:

Mint

NDTV Profit