IndiGo Shares Slide After DGCA Tightens Heat Over Flight Disruptions

Mumbai, Dec 2025 : Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, came under heavy selling pressure in early trade on Monday, plunging as much as 6.6 per cent to an intra-day low of Rs 5,015 on the BSE. Investor sentiment turned cautious after the Directorate General of Civil Aviation (DGCA) extended the deadline for IndiGo CEO Pieter Elbers to respond to a show-cause notice over the airline’s recent operational disruptions.

The stock later recovered some of its losses. By around 9:45 a.m., InterGlobe Aviation was trading at Rs 5,159.50, down by Rs 211 or 3.93 per cent. Despite the partial rebound, the sharp early fall reflected market concerns over regulatory scrutiny and the airline’s ability to stabilise operations in the near term.

The sell-off followed the DGCA’s decision to issue a show-cause notice to IndiGo’s accountable manager a day after serving a similar notice to CEO Pieter Elbers. The aviation regulator took strong exception to the airline’s large-scale flight cancellations over the past week, which caused widespread inconvenience and distress to passengers across multiple cities.

According to the DGCA, the disruptions were largely the result of IndiGo’s failure to adequately plan for the rollout of the revised Flight Duty Time Limitations (FDTL) rules. These rules, which govern the duty hours and mandatory rest periods for flight crew, came into effect recently and significantly altered crew scheduling across the industry.

In its notice, the regulator stated that IndiGo’s “large-scale operational failures” point to serious deficiencies in planning, oversight and management of resources. The airline’s accountable manager has been given 24 hours to explain why enforcement action should not be initiated. The DGCA has warned that if no satisfactory response is received within the extended deadline, it will proceed based on the information currently available.

Amid mounting regulatory pressure, IndiGo said on Sunday that it has already restored about 95 per cent of its network and is planning to operate close to 1,500 flights daily. The airline also claimed that its operations are steadily stabilising, with on-time performance gradually improving and cancellations declining.

The carrier added that it expects near-normal operations to resume by December 10. However, despite these assurances, more than 220 flights had already been cancelled across major airports at the time of reporting, intensifying passenger frustration and raising fresh concerns about operational reliability.

Market analysts said the stock is likely to remain volatile in the short term as investors assess the potential impact of regulatory action on IndiGo’s business outlook. While the airline remains the dominant player in the domestic aviation market, continued disruptions and regulatory scrutiny could weigh on sentiment until full operational stability is restored.

Team Maverick.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)