Shares of InterGlobe Aviation (IndiGo) and SpiceJet experienced a notable increase on Wednesday, following the Indian government's approval of the Emergency Credit Line Guarantee Scheme (ECLGS 5.0), which aims to support the aviation sector amid ongoing geopolitical tensions in West Asia. The government has set aside ₹18,100 crore (approximately $2.2 billion USD) to help micro, small, and medium enterprises (MSMEs) and airlines manage their working capital needs. IndiGo's shares rose by 3.5%, while SpiceJet shares reached the 5% upper circuit limit. Under ECLGS 5.0, airlines can borrow up to ₹1,500 crore (roughly $180 million USD) each, with the National Credit Guarantee Trustee Company Limited (NCGTC) covering 90% of potential losses on these loans. This initiative comes in response to warnings from the Federation of Indian Airlines (FIA) about the risk of a total collapse in the sector due to rising costs and reduced air traffic. Despite a 1% year-on-year decline in domestic air traffic in March 2026, analysts remain optimistic about IndiGo's long-term growth potential, projecting a 15% revenue and 28% EBITDA CAGR from FY26 to FY29, driven by international expansion plans.