IndiGo, India's largest airline, is facing significant turbulence as its shares plummeted by 10% amidst widespread flight cancellations and operational disruptions. The crisis, attributed to issues in crew rostering and internal planning, has prompted government intervention and raised concerns about the airline's handling of new regulations.
The sharp decline in IndiGo's stock price reflects investor anxiety over the operational chaos that has seen the cancellation of hundreds of flights, causing major inconvenience to passengers across the country. On December 5th, IndiGo's stock price was trading at Rs 5,291 on the NSE, a 2.7% decrease in late morning trade. This downturn contributes to an overall 10% drop in the past five sessions. Since the onset of the crisis last week, IndiGo's stock losses have totaled 16%, wiping approximately $4 billion off its market capitalization, which now stands around $21 billion.
Aviation Minister Kinjarapu Ram Mohan Naidu addressed the situation in Rajya Sabha on Monday, stating that the government views the IndiGo crisis seriously and will take strict action to set an example for other airlines. He attributed the crisis to flaws in crew rostering and internal planning systems, not the Aircraft Maintenance and Scheduling System (AMSS). The Minister emphasized that the airline is responsible for managing crew rostering and operational planning on a day-to-day basis and that there would be no compromise on safety.
The root cause of the disruption appears to be IndiGo's struggle to adapt to the new Flight Duty Time Limitation (FDTL) norms implemented last month. These revised regulations mandate longer rest hours and safer shift planning for pilots and crew. While designed to improve fatigue management, IndiGo has struggled to realign its crew schedules in time, resulting in a shortage of available staff. IndiGo admitted that the crisis resulted from internal misjudgments and planning gaps during the rollout of Phase 2 of the FDTL norms.
IndiGo has requested temporary relaxations in FDTL norms for its A320 fleet until February 10, 2026, in order to stabilize operations. The DGCA is currently reviewing these requests while monitoring the airline's compliance with operational and safety standards. The regulatory body has already withdrawn the restriction that barred airlines from combining weekly rest periods with accumulated leave, a condition that had complicated crew rostering.
Facing growing passenger frustration, IndiGo issued a public apology, acknowledging the significant disruptions across its network. The airline cited unforeseen operational challenges, including weather issues and new crew rules, as contributing factors. IndiGo has stated that it aims to fully stabilize operations by February 10, 2026.
The disruptions have had a cascading effect on major aviation hubs, including Delhi, Mumbai, Bengaluru and Hyderabad. At its peak, IndiGo cancelled approximately 550 flights in a single day, contributing to a nationwide total of over 1,000 cancelled flights within a short period. This widespread disruption left thousands of passengers stranded, facing long queues, lack of information, and uncertainty.
The government is closely monitoring the situation and has asked IndiGo to ensure that there is no increase in airfares due to the current disruptions. Aviation Minister Naidu expressed regret for the inconvenience caused to passengers and noted that over five lakh PNR cancellations had been recorded, with Rs 569 crore provided to affected passengers.
