Shares of InterGlobe Aviation, the parent company of IndiGo, dropped nearly 7% on Monday, marking a seventh consecutive session of losses as investors reacted to ongoing operational turmoil and government intervention. The sell-off has wiped out over ₹30,000 crore in market capitalization, highlighting investor concerns over the airline’s ability to manage its operations and regulatory compliance.
The government has directed IndiGo to reduce about 5% of its daily flights, around 110 flights. amid widespread cancellations and delays. These freed slots are set to be reassigned to other carriers to ease passenger inconvenience during the busy winter season. Between December 1 and 8, IndiGo canceled more than 7.3 lakh bookings, issuing refunds totaling nearly ₹745 crore.
Civil Aviation Minister K Ram Mohan Naidu confirmed the curtailment, noting that the measure aims to prevent over-reliance on a single airline, which currently operates about 2,200 flights daily. The Directorate General of Civil Aviation (DGCA) has warned that further cuts may follow if operations remain inconsistent, and top executives, including the CEO and COO, may be summoned to explain operational lapses.
Analysts say the combination of operational disruptions, regulatory scrutiny, and potential penalties has significantly undermined investor confidence. Brokerages have revised price targets downward, while some caution that further volatility is likely until IndiGo stabilizes operations and restores passenger trust. Despite its dominant market share, the airline’s stock performance underscores the risks of operational and regulatory shocks in India’s aviation sector.