Shares of InterGlobe Aviation Limited, the parent company of IndiGo, witnessed a sharp sell-off on Monday as the airline continues to battle one of the worst operational disruptions in India’s aviation history. The stock plunged as much as 10% to Rs 4,842—its steepest single-day fall since February 2022—marking the seventh straight session of losses.
Over just six trading sessions, the stock has dropped 16.4%, erasing nearly Rs 37,000 crore from the company’s market capitalisation.
Disruptions Triggered by New Duty Time Rules
The market rout intensified as investors reacted to prolonged large-scale flight cancellations and delays linked to IndiGo’s transition to revised Flight Duty Time Limitation (FDTL) norms. The new rules are aimed at improving pilot safety and reducing fatigue, but the sudden shift has severely strained airline operations across key Indian airports.
Analysts warned that the continuing disruptions are hurting revenue visibility and weakening hopes of a near-term earnings rebound.
Investec Maintains ‘Sell’ Rating on Dim Earnings Outlook
Amid the turbulence, global brokerage firm Investec maintained its ‘Sell’ rating on InterGlobe Aviation with a price target of Rs 4,040. The brokerage said expectations of a strong third-quarter recovery have now faded after a weak first half of FY26, made worse by operational setbacks.
The crisis deepened after IndiGo failed to fully meet the aviation regulator’s deadline for implementing the new duty-time norms. On December 7, IndiGo and another carrier sought additional time, citing widespread operational stress.
While the regulator granted a brief extension until 6 pm on December 8, it made it clear that no further relaxation would be given.
IndiGo Reports Gradual Improvement in Operations
IndiGo has since stated that its operations are steadily improving and that its network is expected to stabilise by December 10. The airline operated over 1,650 flights on Sunday, up from 1,500 the previous day, and reported an improvement in on-time performance to 75%, compared to just 30% during the peak of the disruption.
The airline has also confirmed that refund processing and baggage services are now functioning at full capacity for both direct and indirect bookings.
Crisis Management Team Formed to Restore Stability
To address the ongoing crisis, IndiGo has constituted a high-level Crisis Management Group comprising Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker and Amitabh Kant, along with CEO Pieter Elbers.
The team has been tasked with restoring full-scale operations and managing the surge in cancellations and delays as quickly as possible.
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