Shares of InterGlobe Aviation Ltd. (the parent of IndiGo) plunged sharply over the course of six trading sessions, falling approximately 16.4 % and wiping out more than ₹37,000 crore from its market capitalization.

Key Highlights

• Shares of InterGlobe Aviation plunged ~16.4% in six sessions, erasing over ₹37,000 crore. 
• Widespread flight cancellations from new pilot duty & night-flying rules triggered regulatory action and investor panic.

The downturn was triggered by a severe operational crisis at the airline. The introduction of stringent pilot duty-time rules (specifically the revised Flight Duty Time Limitations, FDTL) from November 1 stretched the airline’s crew rostering capabilities. As a result, the airline cancelled hundreds of flights— some reports say over a thousand in a matter of days — leaving thousands of passengers stranded across India’s major airports.

Regulatory fallout followed. The Directorate General of Civil Aviation (DGCA) issued a show-cause notice to IndiGo’s CEO, demanded explanations and mitigation plans, and the government stepped in with fare-caps, refund mandates and other directives to protect passengers.

From a market perspective, investors responded harshly. The airline’s dominance — about 65 % of India’s domestic market share — makes this disruption particularly significant: its troubles ripple across the sector. Brokerages lowered their target assessments and warned of rising costs tied to staffing, aircraft utilization and route disruptions.

Also Read: IndiGo Faces Financial Strain as DGCA Acts on Flight Disruptions

While the long-term prospects for IndiGo still rest on its scale, fleet size, and market position, the near-term outlook is clouded by operational and regulatory risk, cost pressures and the challenge of restoring confidence among travellers and investors alike.