IndiGo’s stock experienced a significant decline of 8.2% to ₹4,926.55 on Monday, amidst ongoing flight disruptions and negative assessments from the rating agency Moody’s. On that day, the airline operated 1,800 flights, an increase from 1,650 the previous day, and its on-time performance improved to 91%. Despite these efforts, passengers were still affected by widespread cancellations, with approximately 450 reported at major airports for both departures and arrivals.
The negative investor sentiment reflects ongoing concerns about potential regulatory actions, exacerbating the airline’s stock downturn, which marked the seventh consecutive day of decline. The 8.2% drop is the largest since February 2022, leading to a total market capitalization loss of about ₹37,000 crore over the past week.
Moody’s characterized the flight disruptions as credit negative for IndiGo, highlighting potential financial repercussions from revenue loss due to cancellations, refunds, and compensations, as well as possible penalties from the Directorate General of Civil Aviation. IndiGo reported refunding ₹827 crore to affected passengers, with efforts still ongoing. Additionally, the airline arranged for 9,500 hotel rooms and 10,000 vehicle services for stranded travelers. As part of their recovery efforts, IndiGo confirmed the delivery of over 4,500 bags to customers and anticipated completing the remainder within the next 36 hours.
In response to parliamentary inquiries, Civil Aviation Minister Ram Mohan Naidu Kinjarapu stated that the disruption issue is being taken seriously, with an inquiry underway. He indicated that the government would enforce strict measures against those responsible, aiming for a zero-tolerance approach to non-compliance. The minister mentioned that extensive discussions with airlines occurred before implementing new flight duty time regulations, asserting that safety remains a top priority despite requests for operational adjustments. Naidu emphasized that managing crew rosters and daily operations falls under IndiGo’s responsibilities and noted a meeting with the regulator on December 1, where the airline raised inquiries about duty time norms but did not identify any issues.
Published on December 8, 2025.
