Rising Bomb Threats: Growing Concern For Indigo and Spicejet

India’s aviation industry is facing significant disruptions due to a wave of false bomb threats. In just nine days, over 130 hoax calls have been reported to various airlines. This has led to widespread panic, flight delays, and diversions.

On Thursday, October 24th alone, Indian carriers like Air India, Vistara, Akasa Air, and IndiGo received 70 new bomb threats. Earlier in the month, on October 20th, 24 such threats were reported.

The hoax callers have targeted a range of airlines, including domestic carriers like Air India, IndiGo, Akasa Air, Vistara, SpiceJet, Star Air, and Alliance Air, as well as international flights. These threats have been communicated through various channels, including social media, emails, and even handwritten messages found in aircraft lavatories.

Possible Impact of Bomb Threats on Airlines

• Flight cancellations: Airlines may cancel flights as a precautionary measure to ensure the safety of passengers and crew. This can lead to significant financial losses for the airline due to lost revenue from ticket sales and refunds.
• Delayed flights: Even if flights are not cancelled, they may be delayed due to security checks and investigations. This can disrupt travel plans for passengers and lead to additional costs for the airline.
• Negative publicity: Bomb threats can damage the reputation of an airline, leading to decreased consumer confidence and bookings. This can have a long-term impact on the airline’s financial performance.
• Increased security costs: Airlines may need to invest in additional security measures to prevent future bomb threats. This can increase their operating costs and reduce their profitability.

Airline Stocks Performance

InterGlobe Aviation Ltd shares traded 3.32% down at ₹4,368.90  at around 12:35 PM (IST) on Friday. The stock had closed at ₹4,518.75 in the previous session. InterGlobe Aviation shares have climbed 80.31% in the last one year till date, while the 30-share index has gained 21.34% during the same period.

Spicejet shares opened at ₹56.00 on October 25, 2024, with a fall of 4.51% at 12:35 PM. In the previous session, Spicejet Ltd shares closed at ₹56.15. Spicejet Ltd shares delivered a return of 54.46% in the past 1 year. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.