Shares of IndiGo’s parent company, InterGlobe Aviation, plunged over 3 per cent on Thursday (December 11), weighed down by a guidance cut for the third quarter of the current financial year.
As of 10:55 am, the airline’s shares were trading flat at Rs 4,808.35. However, the stock had earlier touched an intraday low of Rs 4,642.15, marking a 3.4 per cent drop from the previous session’s closing price.
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The guidance cut follows a turbulent phase for IndiGo, triggered by crew rostering issues and new regulatory rules that resulted in widespread flight cancellations, impacting lakhs of passengers across the country.
InterGlobe Aviation updated its Q3 FY2025–26 guidance after the Directorate General of Civil Aviation (DGCA) directed the airline to reduce scheduled domestic flights for the Winter 2025 season by 10 per cent. This directive came on December 9 and has influenced the carrier’s capacity outlook for Q3, Q4, and the full financial year. IndiGo has complied and plans to issue revised guidance for Q4 and FY26 later.
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Effect of IndiGo flight crisis
In the first week of December, IndiGo cancelled nearly 4,500 flights in an effort to stabilise operations following disruptions. These cancellations resulted in revenue losses and higher expenses for passenger support services. The revised Q3 guidance reflects this strain: capacity (ASKs), initially projected to grow in the “high teens,” has been moderated to high single-digit to early double-digit growth. Passenger Unit Revenues (PRASK), earlier expected to remain flattish or slightly positive, are now forecast to experience a mid-single-digit decline. While the full financial impact remains uncertain, the airline said it will likely be lower than earlier estimates.
As per a report of ET Now, Morgan Stanley shares the same, as these projections by revising its F3Q capacity growth expectations from “high teens” to high single-digit or low double-digit growth.
It also anticipates softer passenger unit revenues with a mid-single-digit decline. Despite near-term weakness driven by operational disruptions and higher passenger support costs, the brokerage maintains that IndiGo’s long-term growth story remains strong.
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