IndiGo shares slip over 3% as flight cancellation hits investor sentiment

Shares of IndiGo parent InterGlobe Aviation fell over 3% in early deals on Thursday amid operational challenges that affected its network over the past two days, leading to an estimated 250 to 300 flight cancellations.

InterGlobe Aviation shares slipped 3.31% to Rs 5407.30 in early deals against the previous close of Rs 5592.50. Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 13.07 crore. Market cap of the firm slipped to Rs 2.14 lakh crore. InterGlobe Aviation stock is trading lower than 5-day, 10 day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has gained 26 per cent in one year and gained 20.66 per cent since the beginning of this year. 

IndiGo has taken steps to address widespread operational disruptions In light of these challenges, the airline stated. IndiGo on Wednesday apologised for the large-scale disruptions, saying it regretted the inconvenience caused to passengers." The carrier further clarified, "The airline said the cancellations and delays were triggered by a combination of unexpected operational issues." To stabilise the situation, IndiGo has implemented schedule adjustments for the next 48 hours, assuring passengers that "the airline said these steps should help normalise operations and improve punctuality." Passengers affected by the disruptions are being offered alternative flights or refunds where applicable.

As the airline continues to restore stability and punctuality, the response to these disruptions will be closely monitored by passengers and investors.

IndiGo detailed the underlying causes behind the large-scale breakdown, highlighting that several factors combined to strain operations. IndiGo said minor technical glitches, winter schedule changes, adverse weather, heavy airport congestion and updated crew rostering rules collectively strained operations in a way the airline says it could not have anticipated.

Expanding on this, IndiGo stated: "We acknowledge that IndiGo’s operations have been significantly disrupted across the network for the past two days, and we sincerely apologise to our customers for the inconvenience caused. A multitude of unforeseen operational challenges, including minor technology glitches, schedule changes linked to the winter season, adverse weather conditions, increased congestion in the aviation system and the implementation of updated crew rostering rules had a negative compounding impact on our operations in a way that was not feasible to be anticipated.”