InterGlobe Aviation, the parent company of India’s largest carrier IndiGo, saw its market capitalisation erode by more than Rs 16,000 crore over two trading
sessions (December 4–5) after unprecedented operational chaos forced the airline to cancel over 1,000 flights in a single day, the highest in its history, said a report by CNBCTV 18. Shares of the newest Nifty 50 constituent closed 2.7% lower at Rs 5,297.5 on Friday, having fallen as much as 3.4% earlier in the session. The stock had already shed 3.4% on Thursday, marking a combined weekly decline of nearly 6%. A “Major Reboot” Gone Wrong The trigger: a severe cockpit crew shortage caused by the rollout of Phase 2 of the Directorate General of Civil Aviation’s (DGCA) revised Flight Duty Time Limitations (FDTL) effective November 1, 2025. Key changes in the new rules:
Weekly rest increased from 36 to 48 hours
Maximum 2 night landings per week (earlier 6)
Night duty window extended to midnight–6 AM
IndiGo admitted to “misjudgment and planning gaps”, saying actual crew requirement turned out significantly higher than projected. Compounding the issue were minor tech glitches, winter fog, airspace congestion and roster inflexibility under the new norms.
On Thursday, IndiGo’s on-time performance collapsed to just 19.7% — down from 84% in October and 67% in November. Domestic passenger traffic across airlines dropped from 5.36 lakh on November 30 to 4.74 lakh on December 3.
CEO Elbers Announces “Hundreds More” Cancellations
In a video message to staff and passengers on Thursday evening, CEO Pieter Elbers called December 5 a deliberate “major reboot” of operations to realign aircraft and crew. He warned of “hundreds more cancellations” on Friday (December 6) but assured gradual normalisation between December 10–15, with full schedule restoration targeted only by February 10, 2026.
DGCA Steps In, Withdraws Controversial Rule
Late Thursday, the regulator withdrew a contentious clause that prevented airlines from counting sick leave or privilege leave as part of the mandatory 48-hour weekly rest — a move that immediately eased some pressure.
The DGCA also granted temporary relaxation on night-duty landing caps until February 10, 2026.
What Brokerages Are Saying
Brokerage List:
Citi
Rating: Buy
Target Price: Rs 6,500
Key Comment: Expects schedule adjustments over next 2 days to restore normalcy; gradual OTP recovery ahead
Morgan Stanley
Rating: Overweight
Target Price: Rs 6,540 (cut)
Key Comment: Industry-wide cost pressure; trimmed FY27/FY28 EPS by 20%; expects higher fares to offset costs
Morgan Stanley noted that IndiGo is trading at 9x FY27 EV/EBITDA versus its pre-Covid median of 8.5x, and believes demand recovery is underway (November domestic traffic +7% YoY).
Passenger Fury and Government Ire
Images of chaotic scenes at Delhi, Mumbai, Bengaluru and Hyderabad airports went viral, with passengers stranded for hours. The Civil Aviation Ministry summoned IndiGo’s top leadership and expressed “extreme dissatisfaction” over the handling, directing the airline to stabilise operations immediately and not raise fares during the crisis.
IndiGo has offered full refunds, free rescheduling and meal/hotel vouchers to affected passengers for bookings between December 5–15.
As India’s most punctual and dominant carrier (60–65% market share) grapples with its worst operational crisis in years, investors are watching closely whether the promised December 10–15 recovery holds — or whether the damage to reputation and yields will linger well into 2026.
