IndiGo Share Plunge Tied to Mass Flight Cancellations

InterGlobe Aviation, the owner of IndiGo, saw its shares dip over 7% following a crisis where the airline canceled numerous flights. New pilot regulations led to a chaotic travel situation in India and a market valuation loss of Rs 16,190.64 crore since December 1.

Shares of InterGlobe Aviation, the parent company of IndiGo, have dropped over 7% in the last four days following a widespread crisis, during which the airline canceled many flights, stranding thousands of passengers for hours.

The stock plummeted 7.23% on the BSE in recent trading days. On Friday, shares decreased by 1.22%, closing at Rs 5,371.30 each, hitting an intraday low of Rs 5,266. On the NSE, shares ended 1.27% lower at Rs 5,367.50, with a total decline of 7.30% over four days.

Driving the crisis are new regulations increasing pilots' weekly rest by 12 hours and limiting night landings. IndiGo, which handles two-thirds of India's domestic air traffic, attributed the cancellations to 'misjudgment and planning gaps.' CEO Pieter Elbers expects normalization by December 10-15.

(With inputs from agencies.)