IndiGo, the airline in its peak of focus now, saw its shares drop sharply this week after major flight disruptions and regulatory scrutiny rattled investors. On December 8, 2025, the stock fell nearly 7%, adding to losses seen earlier in the week.
The problems began after new flight duty rules for pilots came into effect. These rules regulate how many hours pilots can fly and how much rest they must get. IndiGo struggled to adjust its crew schedules to comply with the changes, leading to a shortage of available pilots. The result was massive flight cancellations and delays. On December 5 alone, over 1,000 flights were cancelled, causing inconvenience for thousands of passengers and a hit to the airline’s reputation.
The Directorate General of Civil Aviation (DGCA), India’s aviation regulator, has launched a probe into the airline’s operations and issued a show-cause notice to IndiGo’s CEO. The DGCA has now extended the deadline for IndiGo to respond, giving the airline some time to stabilise operations.
IndiGo has set up a “Crisis Management Group” with top executives to manage the situation. The airline is working to adjust flight schedules, revise crew rosters, and restore on-time performance. Reports suggest that flight operations are gradually improving, with on-time performance recovering from a low of 30% back to around 75%.
Despite the short-term challenges, some analysts see a silver lining. Jefferies, a global brokerage firm, has maintained a “buy” rating on IndiGo. The firm believes the airline still has strong market dominance in India and potential for international growth. According to Jefferies, shares could rise by more than 30% once operations stabilise and normal schedules resume.
Investors are being advised to watch whether IndiGo can successfully meet the DGCA deadline and maintain operational improvements. Costs for fuel and crew, along with regulatory oversight, remain key risks in the short term.
While the airline faces immediate hurdles, experts say IndiGo’s long-term fundamentals remain strong. Once the disruptions are resolved, the company is expected to recover and continue its growth trajectory, making this period potentially a buying opportunity for investors.