Moody’s, the global credit rating agency, says IndiGo’s poor preparation for long-announced aviation regulations led to major flight disruptions and is viewed as credit negative.
The agency adds that the chaos highlights serious gaps in the airline’s planning and oversight, despite having over a year to prepare.
As India’s largest domestic carrier, commanding nearly two-thirds of the passenger market, IndiGo’s operational breakdown had a wider impact.
Cancellations cascaded across major cities such as Delhi, Mumbai, Bengaluru and Chennai, with industry estimates indicating that over 1,000 flights were affected within a few days—one of the biggest crises in the airline’s history.
, questioning its readiness despite advance communication on revised duty rules. Additional DGCA action could lift compliance expenses and impose short-term operational curbs, unsettling investors.
Meanwhile, IndiGo has refunded Rs 827 crore worth of tickets and returned about 4,500 misplaced bags so far. After nearly a week of nationwide cancellations and delays, the airline is slowly restoring services. It operated around 1,500 flights on Saturday and 1,650 flights on Sunday, reconnecting 135 of its 138 destinations.
Parent company InterGlobe Aviation says corrective measures are underway, a crisis management team is active, and on-time performance is gradually improving across the network.
IndiGo’s share price remained under heavy pressure, closing at Rs 4,926.55 on the Bombay Stock Exchange, down 8.28% for the day.