IndiGo Shares Extend Fall As Crisis Deepens
IndiGo’s parent company, InterGlobe Aviation, continued to see its share price drop on Tuesday. The stock fell another 1.5%, marking the eighth straight session of losses. In a week, the company has lost nearly 17% of its value, wiping out around ₹40,000 crore in market capitalisation.
Operational problems trigger sell-off
The decline follows a major disruption in flight operations. More than 2,000 flights were cancelled within days due to a shortage of crew after revised duty and rest rules were introduced. The cancellations caused significant inconvenience to passengers and led to regulatory attention from the Directorate General of Civil Aviation.
Regulatory scrutiny increases
The DGCA has issued a show-cause notice to IndiGo, saying the airline failed to plan resources and duty rosters properly. Officials have asked for a detailed explanation and warned that penalties could follow if rules were not followed. Analysts say the crisis has affected investor confidence.
Financial impact ahead
Brokerages have cut earnings estimates for IndiGo for the coming financial year, expecting higher costs and slower capacity growth. The airline holds a large share of the domestic market and its performance could affect overall sentiment in aviation-related stocks.
