Indigo’s predicament seems to be stretching day by day to a massive issue. In a recent update, credit rating agency Moody’s believes that IndiGo can face significant crises due to the current crisis. The report has predicted significant revenue loss. The company will have to return crores of rupees to customers in the form of refunds. Beyond that the company will also have to provide for the penalties that have been levied on it.
The crisis that has been causing such issues stems from DGCA regulations related to FDTL, which the company failed to comply with despite being informed about them a year ago. As per the updates the crisis is also impacting the InterGlobe Aviation shares as well.
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Moody’s report states that InterGlobe Aviation may face financial losses
Moody's stated in its report that InterGlobe Aviation could suffer significant financial losses due to the flight cancellations, refunds and passenger inconvenience. It believes the Directorate General of Civil Aviation (DGCA) may also impose penalties on the company. This new disruption to IndiGo air services has erupted at the peak of the winter season.
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The report further establishes that Indigo’s planning demonstrated significant negligence. The second phase of Flight Duty Time Limitation regulations came into effect on November 1, 2025. The company was informed of this more than a year ago. The rule states that duty hours from midnight to 6 AM will be considered midnight duty. With the new rules only two to three landings are now permitted in a 24-hour period instead of six. These changes were intended to improve safety and address pilot crew fatigue.
Indigo’s failure to comply with regulations
The report has stated that it was due to its weak operational model, IndiGo was unable to adapt its operations to new regulations. This forced it to cancel a large number of flights. Many flights were significantly delayed, causing inconvenience to passengers. DGCA has issued show cause notices to the company’s CEO Pieter Elbers and COO Isidro Porqueras.
On December 8th the company’s stock crashed 8.62%, since December.
Stocks reflect a 15% fall since December 1
This crisis has led to an impact on Indigo shares as well. On December 8th, the company’s stock crashed 8.62% since December 1st. And the shares have fallen by more than 15%. On December 1st the company’s stock closed at Rs 5,794. On December 8th it closed below Rs 5,000.