InterGlobe Aviation Limited, the parent company of IndiGo, witnessed a dramatic fall in its market value on Monday as the airline continued to struggle with one of the most severe operational crises in Indian aviation.
The company’s share price dropped by as much as 10 per cent to ₹4,842, marking its steepest single-day decline since February 2022 and extending its losing streak to a seventh consecutive session.
Across the past six trading days, the stock has shed 16.4 per cent, erasing nearly ₹37,000 crore in market capitalisation.
The persistent sell-off reflects investor anxiety over IndiGo’s ongoing flight disruptions and their potential impact on earnings.
The turmoil stems from IndiGo’s challenges in transitioning to the revised flight duty time limitation norms.
The shift has led to widespread cancellations and delays across major airports, severely denting passenger confidence and straining the airline’s operational capacity.
Analysts warned that these disruptions could dampen hopes of a strong earnings rebound. Brokerage firm Investec maintained its Sell rating on InterGlobe Aviation, reducing expectations of a third-quarter recovery after a subdued first half of FY26.
The firm also reiterated its price target of ₹4,040, citing ongoing risks to profitability.
Regulatory Pressure Adds to Stress
The crisis deepened as IndiGo and another airline sought more time on 7 December to comply with the regulator’s deadline for implementing the new duty-time rules.
Although the regulator granted a brief extension until 6 p.m. on 8 December, it emphasised that no further relaxation would be allowed.
Despite the mounting pressure, IndiGo stated that its operations are gradually improving and projected full network stabilisation by 10 December.
IndiGo reported signs of recovery over the weekend, operating more than 1,650 flights on Sunday compared with 1,500 the day before.
The airline also recorded a notable improvement in on-time performance, which rose to 75 per cent from a concerning 30 per cent earlier in the week.
The company confirmed that refund processing and baggage services are functioning at full capacity for both direct and indirect customers, signalling attempts to restore passenger confidence.
In response to the escalating situation, IndiGo has established a high-level Crisis Management Group.
The team comprises Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker and Amitabh Kant, along with CEO Pieter Elbers.
Their mandate is to stabilise operations swiftly, ease the backlog of cancellations and delays, and restore normalcy across the airline’s network.
As IndiGo works to regain passenger trust and operational steadiness, the airline’s immediate challenge lies in preventing further financial erosion and ensuring compliance with regulatory expectations.
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