InterGlobe Aviation, commonly known as IndiGo, has been struggling to keep up not just on the runway but also on the Dalal Street. As the chaos has stretched into its fourth day, deepening operational turmoil has also spilled into the stock market, with investor sentiment taking a visible hit as large-scale cancellations continue across the country.The sustained disruption has begun to reflect on the company’s market value. IndiGo’s stock slipped 2.5% to Rs 5,298.5 on the BSE on Friday after cancellations surged and the airline sought temporary regulatory relief.
As on 1:51 PM IST, the share was trading at 5,404, down 32 points or 0.60% on the National Stock Exchange. On BSE, it fell 30 points to reach 5,406. The pressure has been building over the week as well, shares of InterGlobe Aviation, IndiGo’s parent company, have fallen more than 7% over the past five trading sessions. Analysts have warned the decline could deepen by as much as 16% if mass cancellations continue.Heavy cancellations have become widespread. More than 400 flights were cancelled on Friday, according to PTI, with long queues and delays reported at major airports. Chennai Airport released a list of disrupted operations for December 5, confirming about 20 departures and nearly a dozen arrivals torn off the schedule by midday. In Goa, the AAI-run Dabolim airport posted on X that 30 IndiGo flights to destinations including Bengaluru, Surat, Chennai, Hyderabad, Ahmedabad, Jaipur, Delhi, Indore, Mumbai and Bhopal had been cancelled since Friday morning.The airline’s on-time performance has deteriorated sharply, falling to just 8.5%, according to data from the aviation ministry.Both the civil aviation ministry and the Directorate General of Civil Aviation (DGCA) are closely tracking the situation, with the regulator maintaining constant communication as cancellations have crossed 1,000 flights in recent days. IndiGo has already planned further schedule cuts from December 8.Despite the market pressure, global brokerages are holding on to long-term optimism. Citi has reiterated its Buy call on IndiGo with a target of R Rs 6,500, indicating a possible 20% upside. The brokerage said the airline’s management has acknowledged the disruptions and is recalibrating schedules to restore stability, expecting improvements within the next two days that could help normalise operations and lift on-time performance.Morgan Stanley, while retaining its Overweight rating, has trimmed its target price to Rs 6,540 from Rs 6,698. The firm noted rising cost pressures across the industry amid tight capacity and has reduced IndiGo’s earnings estimates for FY27 and FY28 by about 20%, citing a softer profitability outlook. According to ET, the firm expects fare increases to partly offset the higher expenses.Meanwhile, IndiGo has requested short-term regulatory relief in a bid to manage its network more efficiently. In a statement, the DGCA said, “IndiGo has requested exemption from the night duty rules for Airbus A320 operations up to February 10, 2026.” The regulator added, “IndiGo has assured DGCA that corrective actions are underway and that normalised and stable operations will be fully restored by February 10, 2026.”The airline has said the temporary exemption would help “reduce passenger inconvenience while maintaining safety margins” as it works to bring schedules back under control.With cancellations mounting, the next few days will be pivotal not only for restoring operational stability but also for repairing investor confidence that has been shaken by one of the airline’s most challenging weeks in recent memory.
