IndiGo Shares Plunge 6.6% After DGCA Summons CEO Over Flight Cancellations

IndiGo Shares Fall Sharply After CEO Summoned Over Flight Cancellations.

Shares of InterGlobe Aviation Ltd. (IndiGo) dropped sharply, marking their biggest decline in eight months, after India’s civil aviation regulator summoned the airline’s CEO to explain widespread flight cancellations.

The stock fell as much as 6.63%, hitting ₹5,015 on the BSE, even as the S&P BSE Sensex edged down just 0.25%. The airline has reported over 300 flight cancellations on Monday, following more than 1,000 on Friday. On Sunday, IndiGo stated it was on track to operate over 1,650 flights, with on-time performance improving to 75%.

Analysts from Jefferies noted that the airline faces higher costs due to cancellations, compounded by a weaker rupee and increased crew expenses, putting additional pressure on operations and profitability.