InterGlobe Aviation Shares Fall Over 4% as IndiGo’s Operational Crisis Enters Seventh Day

InterGlobe Aviation, the parent company of IndiGo, witnessed a sharp decline in its share price on Monday as the airline’s nationwide operational crisis continued for the seventh consecutive day. The stock slipped over 4 percent, touching Rs 5,154 during morning trade. Investor sentiment weakened after persistent flight delays, and cancellations continued to affect IndiGo’s operations across major airports.

Delhi Airport Issues Early-Morning Advisory

The fall in the stock was triggered by an early-morning advisory issued by the Delhi airport, alerting passengers about likely disruptions in IndiGo’s operations throughout the day. The advisory urged travellers to check their flight status before heading to the terminal, signalling that operational stress was expected to continue.

This marked the second consecutive early warning from the airport, intensifying concerns over prolonged service instability at India’s largest airline by market share.

Over 2,000 Flights Cancelled in Six Days

IndiGo’s troubles have deepened since the crisis began, resulting in:

• More than 2,000 flight cancellations over the past six days

• Widespread chaos at airports

• Missing baggage issues

• Refund delays for affected passengers

Despite efforts to stabilise operations, thousands of passengers have faced significant inconvenience, prompting increased scrutiny of the airline’s crisis management.

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Operational Update: Large-Scale Disruptions Continue

On Sunday, IndiGo was scheduled to operate around 2,300 flights. However:

• Only 1,650 flights were operated

• Roughly 650 flights remained cancelled

These large-scale cancellations reflected the depth of the airline’s ongoing operational issues, affecting schedules across multiple major airports.

Refunds and Passenger Support Measures

In response to the rising number of complaints, IndiGo provided updates aimed at addressing passenger concerns:

• Rs 610 crore in refunds has been processed

• Approximately 3,000 pieces of delayed baggage have been delivered

• The airline has waived change and cancellation fees for travel between December 5 and 15

The waiver was implemented to reduce the burden on travellers needing to reschedule trips amid unpredictable disruptions.

Regulatory Scrutiny Intensifies

As the crisis stretched into its seventh day, regulatory pressure mounted. The Directorate General of Civil Aviation (DGCA) issued a show-cause notice to IndiGo on December 6, seeking a detailed explanation for the large-scale disruptions.

CEO Pieter Elbers was granted a one-time 24-hour extension to respond after IndiGo officials requested more time due to ongoing operational constraints. However, the regulator set a firm final deadline of 6 pm on Monday, cautioning that if a comprehensive reply was not submitted, the case would be decided ex parte—without IndiGo’s input.

This rare move by the aviation regulator underscores the seriousness of the operational breakdown and the urgency to understand its root causes.

Market Impact: Investor Concerns Rise

The prolonged disruption, combined with regulatory scrutiny and operational uncertainty, contributed to the sharp fall in InterGlobe Aviation shares. A 4 percent drop in morning trade reflects:

• Investor concerns over the escalating crisis

• The operational and financial implications of mass cancellations

• Reputational impact during peak travel periods

The stock volatility comes at a time when IndiGo is fighting to rebuild passenger confidence, manage logistics, and respond to regulatory queries—all simultaneously.

Passenger Experience Under Strain

The ongoing disruption has resulted in several challenges for flyers:

• Long queues at airports

• Confusion around last-minute cancellations

• Difficulty locating delayed or misplaced baggage

• Extended refund timelines

While IndiGo claims to have processed substantial refunds and cleared a large part of the baggage backlog, passengers continue to report delays and inconvenience across social platforms and complaint channels.

Outlook

With IndiGo entering the seventh day of nationwide operational disruption, focus remains on:

• Whether the airline can quickly stabilise operations

• The response submitted to DGCA and the regulator’s next steps

• Passenger sentiment ahead of the travel-heavy month

The outcome of DGCA’s review and IndiGo’s recovery timeline will remain crucial indicators to watch.|

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