Shares of InterGlobe Aviation — parent of IndiGo — dropped sharply over six trading sessions, erasing more than ₹37,000 crore in market value.
📉 What Triggered the Crash
- The sell-off was triggered by massive operational disruptions after the implementation of new pilot duty-time regulations (FDTL norms), which reportedly led to pilot shortages. This caused widespread flight cancellations — over 1,000 flights were scrapped in a single day at one point — dropping investor confidence deep.
- The stock fell around 16.4% over those six sessions, with a single-day drop as much as 10%, hitting about ₹4,842 per share.
- Brokerages responded swiftly: some cut target prices and warned of looming cost pressures — crew-strength needs, higher fuel/maintenance costs (after rupee depreciation), and increased non-fuel costs due to lower pilot productivity under the new norms.
🔎 What’s at Stake — & Possible Recovery Paths
- The damage to reputation, customer trust, and regulatory scrutiny (the aviation regulator has sent a show-cause notice to IndiGo’s CEO) could weigh on near-term performance.
- Some analysts — even while revising down near-term estimates — say IndiGo’s long-term fundamentals remain intact: market dominance in Indian skies, plans for international expansion, and structural scale advantages may offer a cushion.
- Recovery will likely depend on how quickly IndiGo stabilizes operations, manages costs, and rebuilds trust. If they succeed, the current low stock price could tempt long-term investors looking for value — though near-term volatility remains high.
