Airline stocks saw a sharp decline in the afternoon trading hours of June 12 after a plane crashed near the Ahmedabad Airport in Gujarat. IndiGo shares sharply fell 3 percent to trade at Rs 5,465, while SpiceJet shares were down 1.5 percent.

Early reports suggest that a London-bound Air India flight with 242 passengers onboard crashed right after takeoff from the Sardar Vallabhbhai Patel International Airport. As per preliminary reports, the aircraft crashed in a densely populated area near the airport and hit a building. Immediately post the crash, local residents rushed to the area to help with rescue efforts.

Visuals of the plane crash site show thick willow of smoke emanating from the area.

After the tragedy took place, Air India took to X to say, "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."

A flight crash may raise fears around air travel, which may have likely pushed down the stocks.

Additionally, the shares of Adani Enterprises, which operates the Ahmedabad airport, also declined nearly 1 percent after the plane crash. Adani Enterprises had taken over operations at te airport in 2020.

Gujarat chief minister Bhupendra Patel has reportedly rushed to Ahmedabad to assess the situation. According to an IANS report, Union Home Minister Amit Shah held a discussion regarding Ahmedabad plane crash incident with Patel. The central government has assured all possible assistance, the report added.

Boeing shares also significantly tumbled in the pre-market session on NYSE after the plane crash. The shares were hovering over 5 percent lower.