Why Did IndiGo Shares Plummet Over 3% Amid Major Flight Cancellations?
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Synopsis
InterGlobe Aviation, the parent of IndiGo, has seen its stock dip over 3% following widespread flight cancellations, raising concerns and prompting a regulator probe. With crew shortages and operational challenges at the forefront, how will the airline navigate this turbulent period? Discover the details of this unfolding story.
Key Takeaways
- IndiGo's shares fell over 3% amid widespread flight cancellations.
- Approximately 200 flights were cancelled on Wednesday due to crew shortages.
- New regulations on pilot rest hours have significantly impacted operations.
- The DGCA is investigating the reasons behind the cancellations.
- IndiGo plans to implement adjustments to restore normal operations.
New Delhi, Dec 4 (NationPress) InterGlobe Aviation, the company behind IndiGo, experienced a decline of more than 3 percent in its stock value on Thursday as the airline faced significant flight cancellations nationwide. The stock price fell to Rs 5,405 in the morning, marking its lowest point in over five months, extending its downward trend for the second consecutive session. IndiGo encountered one of its most substantial operational challenges in recent years, with approximately 200 flights cancelled on Wednesday.
The flight disruptions were primarily attributed to a severe crew shortage, particularly among pilots, following the implementation of updated Flight Duty Time Limitation regulations last month.
These new regulations mandate airlines to provide increased rest hours and more humane work schedules for their crew members. IndiGo has struggled to swiftly adapt its operations to comply with these changes.
The repercussions continued into Thursday, with nearly 73 flights cancelled at Bengaluru’s Kempegowda International Airport, further inconveniencing passengers.
In response to the extensive cancellations, IndiGo issued an apology, recognizing the significant disruptions experienced across its network over the past two days.
The airline attributed the situation to a combination of unforeseen challenges, including minor technical issues, adjustments to the winter schedule, adverse weather conditions, increased air traffic congestion, and the introduction of revised crew rostering rules, resulting in a scenario that was difficult to predict.
To stabilize its operations, IndiGo announced it has implemented calibrated schedule adjustments to remain effective for the next 48 hours. The airline is optimistic that these measures will aid in restoring normal operations and gradually improve punctuality.
Meanwhile, the aviation regulator DGCA has initiated an investigation into the disruptions, requiring IndiGo to provide a detailed report outlining the reasons for the cancellations, along with its strategies to minimize delays and passenger inconvenience.
Earlier in the week, IndiGo shares had already experienced a decline of around 2 percent, closing at Rs 5,595.50. Over the past five days, the stock has dropped nearly 6 percent, although it remains more than 2 percent higher compared to six months ago.
Point of View
It is crucial to recognize the implications of IndiGo's operational issues on both passengers and the airline's reputation. The extensive flight cancellations reflect not only operational shortcomings but also highlight the challenges faced by the aviation sector in adapting to regulatory changes. The DGCA's investigation will be pivotal in ensuring accountability and transparency, ultimately aiming to safeguard the interests of travelers.
NationPress
04/12/2025
Frequently Asked Questions
What caused the recent flight cancellations at IndiGo?
The flight cancellations at IndiGo were primarily due to a significant crew shortage, particularly among pilots, following the introduction of new Flight Duty Time Limitation regulations that require more rest hours.
How many flights were cancelled recently?
Approximately 200 flights were cancelled on Wednesday, with additional cancellations spilling over into Thursday.
What measures is IndiGo taking to address the situation?
IndiGo has implemented calibrated schedule adjustments expected to remain in effect for the next 48 hours to stabilize operations and restore normalcy.
Is there an investigation into the flight disruptions?
Yes, the DGCA has launched an investigation and has requested a detailed report from IndiGo regarding the cancellations and its plan to mitigate delays.
How have IndiGo shares performed recently?
IndiGo shares have fallen nearly 6% over the past five days, experiencing a drop of more than 3% on Thursday alone.
