IndiGo Stock Plummets 10%: Rs 37,000 Crore Market Value Erased Amid Massive Flight Disruptions

Mumbai:

InterGlobe Aviation Limited, the parent company of IndiGo, experienced a dramatic market value reduction on Monday as the airline continued to struggle with one of India's most severe aviation travel disruptions in recent history.

The company's stock dropped by 10 percent to Rs 4,842, marking its most significant single-day decline since February 2022 and extending its losing streak to seven consecutive sessions.

In the past six trading days, the stock has declined by 16.4 percent, resulting in a market capitalization loss of approximately Rs 37,000 crore.

Investor sentiment worsened in response to the ongoing wave of widespread flight cancellations and delays caused by IndiGo's transition to revised flight duty time limitation regulations.

Analysts have cautioned that these operational disruptions are further diminishing prospects for a strong earnings recovery in the near term.

Investec, a prominent brokerage firm, maintained its 'Sell' rating on InterGlobe Aviation with a price target of Rs 4,040, noting that expectations for third-quarter performance improvement have deteriorated following a weak first half of FY26.

The situation intensified after the airline encountered difficulties meeting the aviation regulator's deadline for implementing the new duty-time regulations.

On December 7, IndiGo and another carrier requested additional time for compliance, citing operational challenges across multiple airports.

While the regulator granted a short extension until 6 pm on December 8, it firmly stated that no further extensions would be permitted.

IndiGo has subsequently announced that its operations are improving, with its network expected to stabilize by December 10.

The airline operated over 1,650 flights on Sunday, an increase from 1,500 the previous day, and reported improved on-time performance, which rose to 75 percent from the previous 30 percent.

The company also stated that refund processing and baggage services have been restored to full capacity for both direct and indirect bookings.

In response to this crisis, IndiGo has established a high-level Crisis Management Group. This team includes Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker, and Amitabh Kant, alongside CEO Pieter Elbers.

The group's primary objective is to rapidly restore normal operations and address the significant increase in flight cancellations and delays.