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Shares of InterGlobe Aviation, the operator of India’s largest airline, IndiGo, continued their losing streak on Tuesday, December 9, as the company is facing an operational crisis. The stock has fallen around 22% over the last ten days, wiping more than Rs. 53,000 crore in market value.
IndiGo shares slipped to Rs. 4,847.30, far below its 52-week high of Rs. 6,225.05 recorded on August 18, 2025.
This correction has dragged the airline’s market capitalisation down to Rs. 1.87 lakh crore from Rs. 2.40 lakh crore, underscoring the scale of wealth destruction.
The sharp downturn has coincided with operational mismanagement that has caused severe delays, cancellations, and passenger distress across the country.
Analysts say the impact of this crisis is likely to spill over into the company’s financial performance for the ongoing quarter and the full fiscal year.
Global ratings agency Moody’s issued a cautionary note on Monday, stating that IndiGo faces “credit negative implications” due to weak planning and inadequate preparedness for regulatory changes.
Moody’s maintained its Baa3 rating for IndiGo, but has reduced its human capital issuer score from 3 to 4, signifying the pressure of insufficient staff and delayed hiring
The share price of IndiGo has dropped around 18% in December 2025, and analysts are cautioning that regulatory problems due to the current crisis may last till FY27.
Jefferies and UBS have reiterated their ‘buy’ ratings, with target prices of Rs. 7,025 and Rs. 6,350, respectively. B&K Securities also holds a bullish view, assigning a target of Rs. 7,256.
However, Investec, which expects compliance with new Flight Duty Time Limit (FDTL) norms by February 10, 2026, cut its target to Rs. 4,040, maintaining a ‘sell’ call.
JM Financial issued a reduced rating with a Rs. 5,570 target, warning that near-term turbulence could translate into persistent cost pressures. InCred Equities also holds a reduced stance.
Also Read: How to Get a Refund if Your IndiGo Flight is Cancelled: Simple, Fast Steps
The crisis escalated after IndiGo struggled to meet the regulator’s deadline for transitioning to revised duty-time rules. Although the airline sought an extension, citing operational stress, the regulator was only granted a brief reprieve until 6 pm on December 8.
IndiGo said its operations are improving. The carrier operated over 1,650 flights on Sunday, up from 1,500 the previous day, while on-time performance improved to 75%, a significant recovery from 30%.
To address mounting disruptions, the airline has established a Crisis Management Group comprising Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker, Amitabh Kant, and CEO Pieter Elbers, tasked with restoring normalcy, improving passenger services, and resolving backlog issues.
