IndiGo Shares Plummet Amid Massive Flight Cancellations Due to New Crew Regulations

IndiGo experienced one of its most significant operational challenges with approximately 200 flight cancellations on Wednesday.

New Delhi:

InterGlobe Aviation, IndiGo's parent company, witnessed its shares decline by over 3 percent on Thursday as the airline continued to grapple with widespread flight disruptions across India.

The stock price dropped to Rs 5,405 during morning trading, reaching its lowest point in more than five months and continuing its downward trend for the second consecutive day. IndiGo suffered one of its most substantial operational setbacks in recent history, with around 200 flights cancelled on Wednesday.

The primary cause of these disruptions was a critical shortage of crew members, especially pilots, following the implementation of revised Flight Duty Time Limitation regulations last month.

These new regulations require airlines to provide crew members with extended rest periods and more humane work schedules. IndiGo has encountered significant challenges in rapidly adapting its network operations to comply with these regulatory changes.

The disruptions continued into Thursday, with approximately 73 flights cancelled at Bengaluru's Kempegowda International Airport, further exacerbating passenger inconvenience.

In response to the widespread cancellations, IndiGo issued a formal apology, acknowledging major service disruptions throughout its network over the previous two days.

The airline explained that multiple unforeseen challenges—including minor technical issues, winter schedule adjustments, adverse weather conditions, increased air traffic congestion, and the implementation of updated crew rostering rules—combined to create a situation that was difficult to predict.

To stabilize its operations, IndiGo announced it had made calibrated schedule adjustments that would remain effective for the next 48 hours. The airline expressed confidence that these measures would facilitate the restoration of normal operations and gradually improve punctuality.

Meanwhile, the Directorate General of Civil Aviation (DGCA) has initiated an investigation into these disruptions. The aviation regulator has requested IndiGo to submit a comprehensive report detailing the reasons behind the cancellations and outlining its strategy to reduce delays and minimize passenger inconvenience.

On Tuesday, IndiGo shares had already declined by approximately 2 percent, closing at Rs 5,595.50. The stock has decreased nearly 6 percent over the past five days but still maintains a gain of more than 2 percent over the last six months.