India’s largest airline, IndiGo has witnessed a sharp erosion of investor confidence as ongoing flight cancellations and operational disruptions have wiped out nearly Rs 25,000 crore from the market capitalisation of its parent company, InterGlobe Aviation Ltd, over the last six trading sessions. According to stock exchange data, the airline’s continuous operational challenges have triggered a significant decline in its share price.
The turbulence extends beyond markets, impacting more than 2.9 lakh retail shareholders who hold positions in InterGlobe Aviation. The steep fall in valuation reflects rising concerns over IndiGo’s ability to stabilise its operations quickly and manage passenger traffic efficiently amid the ongoing crisis.
Since late November, IndiGo has cancelled hundreds of flights, with the situation deteriorating sharply in the past three days. Airports across major Indian cities witnessed chaotic scenes, as frustrated passengers scrambled for updates, struggled to rebook tickets, and battled uncertainty around their travel plans. The lack of timely communication from the airline has further amplified passenger distress.
IndiGo, which operates the largest fleet and commands the highest domestic market share in India, is facing mounting pressure to restore normalcy. The disruptions have raised questions about manpower planning, operational preparedness, and contingency measures during peak travel periods.
Industry experts believe the airline must accelerate corrective steps to avoid further reputational and financial damage. Prolonged cancellations could also impact IndiGo’s leadership position in India’s aviation sector, especially if the crisis persists into the upcoming holiday season.
As the airline works to address the disruptions, stakeholders from investors to passengers are closely watching IndiGo’s next moves, hoping for swift operational recovery and improved communication protocols.
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