Indigo Loss of Rs 16000 CRORE According to a report by CNBCTV 18, InterGlobe Aviation, the parent company of India’s biggest airline IndiGo, saw its market capitalization decline by more than Rs 16,000 crore over the course of two trading sessions (December 4–5) as a result of unprecedented operational chaos that forced the airline to cancel over 1,000 flights in a single day, the most in its history.
After falling as much as 3.4% earlier in the day, shares of the newest Nifty 50 constituent ended Friday’s trading session 2.7% lower at Rs 5,297.5. The stock had already dropped 3.4% on Thursday, resulting in a roughly 6% weekly fall.
An Improper “Major Reboot”
The Directorate General of Civil Aviation’s (DGCA) Phase 2 amended Flight Duty Time Limitations (FDTL), which went into effect on November 1, 2025, created a serious cockpit crew shortage.
Key changes in the new rules:
- The weekly rest period was extended from 36 to 48 hours.
- No more than two night landings each week (formerly six)
- The night shift was extended to midnight and six in the morning.
- IndiGo acknowledged “misjudgment and planning gaps,” stating that the real personnel required was much more than anticipated. Minor technical difficulties, winter fog, airspace congestion, and roster rigidity under the new standards all contributed to the problem.
IndiGo’s on-time performance fell to just 19.7% on Thursday, from 67% in November and 84% in October. Between November 30 and December 3, domestic passenger traffic on all airlines decreased from 5.36 lakh to 4.74 lakh.
CEO Elbers Says There Will Be “Hundreds More” Cancellations
CEO Pieter Elbers described December 5 as a purposeful “major reboot” of operations to realign aircraft and crew in a video message sent to employees and passengers on Thursday night. On Friday, December 6, he issued a warning about “hundreds more cancellations,” but he also promised a gradual return to normalcy between December 10 and 15, with a full schedule restoration only planned for February 10, 2026.
DGCA intervenes and removes the contentious rule.
A controversial provision that prohibited airlines from counting sick leave or privilege leave as part of the required 48-hour weekly break was removed by the regulator late on Thursday. This action immediately relieved some pressure.
Additionally, night-duty landing limitations were temporarily relaxed by the DGCA until February 10, 2026.
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