IndiGo’s Market Value Crashes By Nearly ₹37,000 Crore, Turbulence Deepens As Flight Chaos Triggers Investor Panic

Mumbai: InterGlobe Aviation, the parent company of IndiGo, suffered a steep fall in market value on Monday as the airline continued to struggle with severe disruptions in flight operations. The stock plunged up to 10 percent to Rs 4,842-its sharpest single-day fall since February 2022—and marked its seventh straight session in the red.

In just six trading sessions, the stock has dropped 16.4 percent, wiping out nearly Rs 37,000 crore in market capitalisation. Investors reacted strongly to the ongoing flight cancellations and delays caused by IndiGo’s transition to the revised Flight Duty Time Limitation (FDTL) norms.

Flight Chaos Sparks Investor Sell-Off

The operational mess began when IndiGo failed to fully transition to the new duty-time rules by the regulator’s deadline. Both IndiGo and another airline requested more time on December 7, citing stress across airports.

Although the regulator granted an extension until 6 pm on December 8, it refused any further relaxation. As a result, IndiGo slipped into a spiral of cancellations, delays, and passenger complaints, fueling concerns about its financial performance for the rest of FY26.

Brokerage firm Investec reiterated its Sell rating with a target price of Rs 4,040, saying hopes of a third-quarter earnings recovery have weakened after an already soft first half.

IndiGo Tries to Stabilise Operations

The airline has claimed that operations are improving. On Sunday, IndiGo operated over 1,650 flights, up from 1,500 the previous day. Its on-time performance also improved significantly—jumping from 30 percent to 75 percent.

Refunds and baggage services are now fully functional, according to the company.

Crisis Management Group Takes Charge

Responding to the crisis, IndiGo has formed a top-level Crisis Management Group. Members include Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker, and Amitabh Kant, along with CEO Pieter Elbers.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly. Readers should consult financial professionals before making any investment or trading decisions.