Shares of InterGlobe Aviation Ltd., the parent company of IndiGo, continued to decline on Tuesday, December 9, trading 2% lower. The stock was the biggest loser on the Nifty 50 a day earlier, suffering its sharpest single-day drop since February 2022. This marks its seventh consecutive session of losses — the longest such streak since February 2023. Trading activity spiked, with volumes hitting a seven-month high as 1.58 crore shares were exchanged, far above the 20-day average of 12.1 lakh. Deliveries also surged to 71.7 lakh shares, compared to the usual 7.3 lakh. In total, the stock has erased nearly ₹40,000 crore in market value over the past week.
Meanwhile, the DGCA has received IndiGo’s reply to its show-cause notice regarding the widespread disruptions. The airline said it cannot yet identify the exact reasons and has requested more time for a full analysis. IndiGo cited several early contributors, including minor technical issues, winter schedule changes, poor weather, system congestion and challenges in crew rostering under FDTL Phase II. These factors gradually weakened on-time performance and eventually strained crew availability, prompting a large-scale network “reboot” on December 5.
Sentiment deteriorated further after Moody’s labeled the disruptions “credit negative,” warning of potential revenue losses from refunds, compensation and penalties. Analysts noted that IndiGo’s dominant 65% domestic market share, high utilisation model, rising crew costs and currency pressures have amplified the impact of the new pilot rest rules. Shares closed 8.62% lower on Monday at ₹4,907.50, down over 15% in five sessions.
