IndiGo in Focus as 550 Flights Cancelled Amid Disruption

IndiGo's parent, InterGlobe Aviation, is in the spotlight after reports that the airline canceled more than 550 flights on Thursday as operational disruptions stretched into a third day. The stock has slid about 6% this week, slipping from around Rs 5,794 on December 2 to roughly Rs 5,437 on December 4. Global broker Morgan Stanley trimmed its target price and lowered its EBITDA and EPS estimates, while maintaining an overweight rating.

The disruptions are being blamed on factors including cabin crew.Woes and technology issues have forced IndiGo to adjust schedules, with the carrier indicating that some cancellations are part of normalising operations. The airline warned that additional flights could be cancelled over the next two to three days as it works to restore normal operations.

At the airport level, Mumbai saw the heaviest cancellations, with 118 flights scrapped, followed by Bengaluru (100), Hyderabad (75), Kolkata (35), Chennai (26), and Goa (11). Cancellations were also reported at several other airports. IndiGo operates roughly 2,300 flights a day, and its on-time performance plummeted to about 19.7% on Wednesday, down from 35% the day before, underscoring the scale of the disruption.

Investors reacted to the turbulence with a cautious stance, as the week-long decline in IndiGo’s shares nears 9% in five trading sessions. The combination of operational challenges and downgraded targets has added to concerns about how the airline will meet its near-term results and strategic targets.

For travelers, the disruptions translate into delays and rebookings as the carrier works to normalise schedules. Customers are advised to monitor the latest flight information and check with the airline for any changes to itineraries.

Cover image source: IndiGo shares slip over 3% as flight cancellation hits investor sentiment 🔗

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