Shares of InterGlobe Aviation, the parent company of India’s largest airline IndiGo, fell nearly 7 percent early today, extending a decline that has persisted over multiple trading sessions. This drop follows a show-cause notice issued by the Directorate General of Civil Aviation (DGCA) due to a series of widespread flight cancellations and operational disruptions that stranded thousands of passengers.
Investors are grappling with increasing uncertainty regarding the airline’s short-term prospects. The regulatory notice highlights the mounting pressure on IndiGo’s management to account for roster failures and crew-management issues arising from revised pilot duty-time regulations.
Analysts and brokerage firms reflect the growing tension between immediate concerns and the airline’s long-term structural strengths. Some have already reduced their price targets, cautioning of further declines if the cancellations and resulting regulatory consequences continue. They cite reduced profit margins due to possible compensation payments, refund obligations, and escalated crew-hiring costs. Conversely, some analysts maintain that IndiGo’s commanding share of the domestic market, extensive fleet, and robust brand position it well for the long term, especially if operations normalize swiftly and passenger demand remains strong.
In response to the crisis, IndiGo’s management has initiated several steps to mitigate the situation. Refunds are being processed, and efforts are underway to re-schedule canceled flights where feasible. An internal “crisis-management group” has also been reportedly formed to help restore confidence among travelers and stakeholders.
Currently, the stock remains under pressure, with market focus on how swiftly IndiGo can stabilize its operations and reassure both regulators and its customer base. As of 10:23 AM, the stock was trading 4 percent lower at ₹5,118, reaching an intraday low of ₹5,001 on the NSE, compared to its closing value of ₹5,370.50 on Friday.
Published on December 8, 2025.
