Shares of InterGlobe Aviation Limited, the parent company of IndiGo, plunged sharply on Monday, falling as much as 10 per cent to Rs 4,842 — the airline’s steepest single-day drop since February 2022. The decline marked the seventh consecutive session of losses, erasing nearly Rs 37,000 crore in market capitalization. The sell-off intensified as investors reacted to widespread flight disruptions caused by IndiGo’s transition to revised duty-time norms. Analysts warned that prolonged operational stress could further dampen earnings prospects, weakening hopes of a robust third-quarter recovery.

Over the past six trading days, the stock has lost 16.4 per cent, prompting brokerage firm Investec to maintain a ‘Sell’ rating with a price target of Rs 4,040. The firm cited a weak first half of FY26 and a dim outlook for near-term operational recovery. The crisis escalated when IndiGo struggled to meet the regulator’s deadline for implementing new flight duty-time rules. While the regulator granted a short extension until December 8, it clarified that no further leniency would be offered, putting additional pressure on operations.

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In response, IndiGo reported improvements in its network, operating over 1,650 flights on Sunday with on-time performance rising to 75 per cent from just 30 per cent earlier. Refunds and baggage services are now fully functional, covering both direct and indirect bookings.

To tackle the operational challenges, the airline has formed a high-level Crisis Management Group, including Chairman Vikram Singh Mehta, CEO Pieter Elbers, and board members Gregg Saretsky, Mike Whitaker, and Amitabh Kant. The team’s mandate is to stabilise operations and swiftly address the backlog of cancellations and delays.

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