IndiGo shares hold the ground even as DGCA asks airline to cut flights by 5%
InterGlobe's flight cancellations are mainly on account of operational challenges faced on implementation of phase II of Flight Duty Time Limitation (FDTL) norms effective November 1, 2025.
- Dec 9, 2025,
- Updated Dec 9, 2025 11:45 AM IST
Shares of InterGlobe Aviation Ltd (IndiGo) were trading marginally higher in Tuesday's trade amid reports the DGCA reportedly asked the airline to cut slots by 5 per cent in the winter flight schedule. This would result in 100 flight cuts daily, ET NOW reported. The move comes after the low-cost carrier witnessed over 4,200 flight cancellations in the past eight days, which are 23 per cent of the 2,300-plus daily flights the airline was scheduled to clock in December 2025. Analysts fear one-time penalty for IndiGo and have cut their earnings estimates for FY26 steeply.
The Directorate General of Civil Aviation (DGCA) in a show cause notice on December 6 had sought clarification from the airline. The response has been filed. At 11.15 am, the stock was up 0.13 per cent at Rs 4,933 apiece.
The Ministry of Civil Aviation, meanwhile, decided to institute an inquiry into this disruption. In addition, certain FDTL norms of the Directorate General of Civil Aviation have been put in abeyance with immediate effect. However, timely recovery of normal operations and their sustenance under any potential change in regulations remains critical, Crisil Ratings said.
InterGlobe's flight cancellations are mainly on account of operational challenges faced on implementation of phase II of Flight Duty Time Limitation (FDTL) norms effective November 1, 2025, along with other factors such as technical glitches, delays in airport systems, winter schedule changes, air traffic congestion and adverse weather conditions leading to a compounding effect.
This may have a potential impact on operating and financial performance of IndiGo, depending on the pace of operational recovery, Crisil said.
Emkay Global has cut it FY26 revenue estimate by 3 per cent, Ebitda estimate by 8 per cent and ex-forex PBT by 17 per cent. It estimated a 2 per cent impact each on volume and yield, along with some increase in CASK.
"We lower the target P/E from 23 times to 22 times and cut target by 7 per cent to Rs 6,300. While IndiGo runs the risk of lost reputation and regulatory support, its position in the Indian aviation market is vital and quick normalisation of operations should revive the momentum," it said.
JM Financial said given the dominant 62 per cent-plus market share in the Indian Airlines industry, the government is unlikely to curtail capacity growth given the growing demands of the Indian economy. Regulatory action including a show-cause notice to the CEO (possible management change) is likely to further dampen stock performance, besides possible impending one-time penalty, JM said.
Shares of InterGlobe Aviation Ltd (IndiGo) were trading marginally higher in Tuesday's trade amid reports the DGCA reportedly asked the airline to cut slots by 5 per cent in the winter flight schedule. This would result in 100 flight cuts daily, ET NOW reported. The move comes after the low-cost carrier witnessed over 4,200 flight cancellations in the past eight days, which are 23 per cent of the 2,300-plus daily flights the airline was scheduled to clock in December 2025. Analysts fear one-time penalty for IndiGo and have cut their earnings estimates for FY26 steeply.
The Directorate General of Civil Aviation (DGCA) in a show cause notice on December 6 had sought clarification from the airline. The response has been filed. At 11.15 am, the stock was up 0.13 per cent at Rs 4,933 apiece.
The Ministry of Civil Aviation, meanwhile, decided to institute an inquiry into this disruption. In addition, certain FDTL norms of the Directorate General of Civil Aviation have been put in abeyance with immediate effect. However, timely recovery of normal operations and their sustenance under any potential change in regulations remains critical, Crisil Ratings said.
InterGlobe's flight cancellations are mainly on account of operational challenges faced on implementation of phase II of Flight Duty Time Limitation (FDTL) norms effective November 1, 2025, along with other factors such as technical glitches, delays in airport systems, winter schedule changes, air traffic congestion and adverse weather conditions leading to a compounding effect.
This may have a potential impact on operating and financial performance of IndiGo, depending on the pace of operational recovery, Crisil said.
Emkay Global has cut it FY26 revenue estimate by 3 per cent, Ebitda estimate by 8 per cent and ex-forex PBT by 17 per cent. It estimated a 2 per cent impact each on volume and yield, along with some increase in CASK.
"We lower the target P/E from 23 times to 22 times and cut target by 7 per cent to Rs 6,300. While IndiGo runs the risk of lost reputation and regulatory support, its position in the Indian aviation market is vital and quick normalisation of operations should revive the momentum," it said.
JM Financial said given the dominant 62 per cent-plus market share in the Indian Airlines industry, the government is unlikely to curtail capacity growth given the growing demands of the Indian economy. Regulatory action including a show-cause notice to the CEO (possible management change) is likely to further dampen stock performance, besides possible impending one-time penalty, JM said.