Shares of major airlines such as InterGlobe Aviation, the parent of IndiGo, and SpiceJet, as well as online travel firms like ixigo and Easy Trip Planners, soared up to 7% on Monday after U.S. President Donald Trump and Iran's deputy foreign minister said an initial agreement had been reached to end the war and restore shipping through the Strait of Hormuz.
IndiGo shares gained 4.5% to their day's high of Rs 4,920, while fellow airline SpiceJet soared 7.35% to Rs 13.20. Booking platforms ixigo and Easy Trip planners gained 6% and 2%, respectively.
"The Deal with the Islamic Republic of Iran is now complete," Trump wrote on his Truth Social platform. “Ships of the world, start your engines. Let the oil flow”, he added. Trump said on Sunday that vessels would be able to pass through the Strait of Hormuz "toll free" and that a U.S. naval blockade of Iranian ports would be lifted. Pakistan, which acted as a mediator between the two sides, said the U.S. and Iran would sign a memorandum of understanding in Switzerland on Friday.
Iran's semi-official Mehr news agency reported that the draft agreement includes a provision to reopen the Strait of Hormuz within 30 days under arrangements overseen by Iran. The country’s Deputy Foreign Minister Kazem Gharibabadi said negotiations on a broader agreement would continue during a proposed 60-day ceasefire period.
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Rising tensions in the region weighed on travel and tourism stocks, as flight disruptions, rerouting and cancellations pushed up operating costs for airlines, particularly fuel and crew expenses. The uncertainty also hurt travel sentiment, leading to weaker demand and a rise in booking cancellations.
The impact of the conflict was evident in airline operations. At the start of the war, IndiGo, India's largest carrier by market share, suspended all flights to and from the Middle East. Earlier this month, the airline also cancelled services to and from Manchester.
In addition, IndiGo announced the suspension of flights to Langkawi, Krabi, Ho Chi Minh City, Hong Kong and Shanghai from July 1, 2026, while the services to Siem Reap will be paused from July 3. The suspensions are scheduled to remain in place until September 30, 2026.
With a peace deal now in place and the Strait of Hormuz expected to reopen, investors will be watching for signs of normalisation in global travel and aviation. A reduction in geopolitical risks could help ease fuel costs, restore flight schedules and support travel demand, while pace of recovery will depend on how quickly shipping routes return to normal.
