IndiGo Crisis Wipes ₹37,000 Crore Off InterGlobe Aviation
Stock plunges 10% as flight disruptions, weak outlook rattle markets
- InterGlobe Aviation drops 10%, its steepest fall since Feb 2022
- Six-day slide erases ₹37,000 crore in market value amid IndiGo chaos
- Investec maintains ‘Sell’ rating, says Q3 recovery hopes fading
- IndiGo forms crisis group; aims to stabilise operations by Dec 10
GG News Bureau
Mumbai, 8th Dec: InterGlobe Aviation Limited, the parent company of IndiGo, saw a sharp erosion of investor wealth on Monday as the airline continued to face one of the worst operational meltdowns in Indian aviation history. The stock tumbled 10% to ₹4,842 — its biggest single-day fall since February 2022 — extending its losing streak to a seventh straight session.
In the past six trading days, the stock has lost 16.4%, wiping out nearly ₹37,000 crore in market capitalisation. The sell-off intensified as IndiGo’s widespread flight cancellations and delays, triggered by its transition to revised flight duty time limitation (FDTL) norms, showed little sign of immediate resolution.
Brokerage firm Investec reiterated its Sell rating with a price target of ₹4,040, warning that expectations of a third-quarter rebound have weakened after a soft first half of FY26.
The crisis deepened last week when IndiGo struggled to meet the regulator’s FDTL compliance deadline. Although the DGCA granted a limited extension until December 8, it refused further relaxation.
IndiGo said operations are gradually improving and projected full stabilisation by December 10. The airline operated over 1,650 flights on Sunday, up from 1,500 a day earlier, while on-time performance improved sharply to 75% from 30%. Refunds and baggage services, it said, are now functioning at full capacity.
To manage the crisis, IndiGo has formed a high-level Crisis Management Group comprising Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker, Amitabh Kant, and CEO Pieter Elbers. Their mandate is to expedite operational recovery and address passenger distress amid the surge in cancellations and delays.
