Shares of IndiGo, India’s largest airline, dropped sharply again on Monday as the company continued to struggle with a major operational crisis. The stock fell 8% during the day, adding to a total loss of 16% since the issue began last week. Nearly $4 billion has been wiped off IndiGo’s market value, bringing it down to around $21 billion.
The trouble started when IndiGo failed to prepare for new aviation rules that came into effect on November 1. These rules require stricter limits on night flying and more weekly rest for pilots. Because the airline did not adjust its crew schedules in time, its entire roster system collapsed in December — a month when travel demand is at its highest due to holidays and wedding season.
As a result, thousands of IndiGo flights were cancelled across the country, leaving passengers stranded and frustrated. The sudden cuts in capacity also caused airfares to rise sharply, prompting the government to step in to control prices. Other airlines in India did not face similar disruptions, highlighting that the issue was specific to IndiGo’s planning and scheduling.
On Monday alone, IndiGo cancelled 127 flights in Bengaluru and 32 in Mumbai, according to airport officials. This added to the growing list of disrupted flights, further damaging the airline’s reputation and increasing pressure on its operations team.
IndiGo said on Sunday that it expected its services to return to normal by Wednesday. However, the situation worsened when India’s civil aviation regulator issued a firm notice, giving the airline 24 hours to explain why action should not be taken against it. The regulator is concerned about passenger safety, poor planning, and the large-scale cancellations.
The crisis has turned into a major public relations setback for IndiGo, which normally holds a strong position in the market with 65% share. Analysts say the incident could impact customer trust if not resolved quickly.
While IndiGo is working to stabilise its schedules, investors remain cautious. The airline now faces not only the challenge of restoring normal operations but also rebuilding confidence among passengers, regulators, and shareholders alike.
