IndiGo Shares Slip as Airline Faces Operational Crisis

Shares of IndiGo (InterGlobe Aviation) extended their decline on Tuesday, reflecting growing market concerns over the airline’s ongoing operational challenges. The stock dropped 1.5% to ₹4,850 in morning trade, following a sharp 8% fall on Monday, reaching a multi-month low.

Over the past seven days, IndiGo’s shares have fallen about 17%, wiping out nearly ₹40,000 crore in market value. The decline comes amid a deepening operational crisis and mounting regulatory scrutiny.

Market Performance: Share Price Update

• Current price: ₹4,850
• Decline over seven days: 17%
• Market capitalisation: Below ₹2 lakh crore
• Consecutive losing sessions: 8

The continued fall highlights investor concern over IndiGo’s ability to manage its operations effectively under new regulations.

Operational Challenges and Flight Disruptions

IndiGo’s crisis stems from multiple operational issues:

• Flight cancellations: Over 2,000 domestic and international flights were cancelled over six days, causing chaos at major airports.
• Crew shortage: Particularly among pilots, worsened by new Flight Duty Time Limitation (FDTL) norms, requiring longer rest periods and stricter rosters.
• Network recalibration: The airline has struggled to adjust its point-to-point network to comply with updated regulations, leading to delays and mounting passenger complaints.

Delhi airport reiterated that schedules remain unstable, advising passengers to confirm flight status before travelling.

Regulatory Pressure Intensifies

Under the revised FDTL regulations, the DGCA flagged significant gaps in IndiGo’s planning, oversight, and management, issuing a formal show-cause notice.

Civil Aviation Minister Ram Mohan Naidu Kinjarapu explained in Parliament that the disruptions resulted from internal rostering and planning issues. He emphasised that passenger protection rules under Civil Aviation Requirements (CARs) will be strictly enforced and highlighted the ministry’s push to expand competition in the Indian aviation sector.

Company Outlook Amid Crisis

IndiGo had earlier indicated that operations might stabilise by December 10, but investor confidence remains fragile. Key concerns include:

• Financial impact of prolonged cancellations
• Rising crew costs due to compliance with FDTL norms
• Potential regulatory consequences from DGCA oversight

The operational crisis underscores the challenges faced by major airlines in maintaining service quality while adhering to evolving safety and duty regulations.

Summary

IndiGo’s operational meltdown has translated into a sharp market reaction:

• Stock down 17% over seven days
• Market capitalisation loss near ₹40,000 crore
• Flight disruptions and crew shortages are impacting service
• Regulatory scrutiny intensifying as DGCA issues show-cause notice

The ongoing crisis highlights the delicate balance between operational efficiency, regulatory compliance, and market confidence in India’s aviation sector.