IndiGo Stock Plunges 10%, Wiping Out Rs 37,000 Crore In Market Value

InterGlobe Aviation Limited, the parent company of IndiGo, saw its market value shrink sharply on Monday as the airline continued to grapple with one of the worst travel disruptions in India's aviation history.

The stock fell as much as 10 per cent to Rs 4,842, its steepest single-day drop since February 2022, marking the seventh straight session of losses.

Over the past six trading days, the stock has now lost 16.4 per cent, wiping out nearly Rs 37,000 crore in market capitalisation.

The sell-off intensified as investors reacted to the prolonged wave of large-scale flight cancellations and delays triggered by IndiGo's transition to the revised flight duty time limitation norms.

Analysts warned that the disruptions are further weakening hopes of a strong earnings rebound.

Brokerage firm Investec maintained its 'Sell' rating on InterGlobe Aviation, with a price target of Rs 4,040, saying that expectations of a third-quarter recovery have dimmed after a weak first half of FY26.

The crisis escalated after the airline struggled to meet the regulator's deadline for transitioning to the new duty-time rules.

IndiGo and another carrier had sought more time on December 7, citing operational stress across multiple airports.

While the regulator granted a brief extension until 6 pm on December 8, it made it clear that no further leeway would be allowed.

IndiGo has since said that its operations are improving and that its network is on track to stabilise by December 10.

The airline operated over 1,650 flights on Sunday, up from 1,500 the previous day, and also reported better on-time performance, which rose to 75 per cent from just 30 per cent.

The company added that refunds and baggage services are now functioning at full capacity for both direct and indirect bookings.

In response to the crisis, IndiGo has formed a high-level Crisis Management Group. The team includes Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker and Amitabh Kant, along with CEO Pieter Elbers.

Their mandate is to restore normal operations quickly and address the surge in cancellations and delays.

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