IndiGo Shares Under Pressure as 550 Flights Cancelled

IndiGo parent InterGlobe Aviation is facing intense market scrutiny after the airline cancelled more than 550 flights on Thursday, extending operational disruptions into a third consecutive day. The turbulence has hit investor sentiment, with the stock falling nearly 6% in just two sessions—from ₹5,794 on December 2 to ₹5,437 on December 4.

In Wednesday’s session alone, InterGlobe Aviation shares slipped 2.77%, reflecting concerns over the scale of cancellations and the airline’s ability to stabilize operations. As the country’s largest carrier, IndiGo’s reliability is closely tied to overall market confidence in the aviation sector.

Global brokerage Morgan Stanley has reacted to the disruptions by trimming its target price on InterGlobe Aviation by over 2%, lowering it to ₹6,540 from ₹6,698. The firm also reduced its EBITDA and earnings per share estimates but maintained an ‘overweight’ rating, signalling long-term confidence despite short-term turbulence.

The airline has attributed the disruptions to a combination of cabin-crew shortages, rostering challenges, and technology-related issues. These operational bottlenecks have forced IndiGo to revise its schedules and carry out planned service cancellations to stabilize the network.

Further cancellations are expected over the next two to three days as IndiGo works to restore normal operations. The carrier, which operates nearly 2,300 flights daily, has also seen its on-time performance plunge to 19.7% on Wednesday, a sharp decline from 35% on Tuesday.

Despite the widespread disruption, there is no indication or credible signal that IndiGo is headed for an acquisition. The situation appears to be operational—not financial—and analysts believe the airline is focused on recovery rather than strategic ownership changes.

IndiGo’s performance in the coming days will be crucial as the airline works to regain passenger trust and restore operational stability across its network.