Aviation stock falls 3% after 200+ flights are cancelled amid staffing and regulatory pressures

Synopsis:
The shares of this aviation company were in the news today after the company cancelled more than 200 flights due to operational, technical, and crew shortage issues. Let’s see what is happening with this aviation firm.  

The shares of this company, which is India’s largest passenger airline operating as a low-cost carrier, serving 86 destinations, including 24 international destinations, and providing passengers with a simple and unbundled product, were in focus today after the flight cancellation news, along with several other reasons, hit the market. 

With a market cap of 2,13,592 crore, the shares of Interglobe Aviation Ltd reached a low of Rs 5407.30 compared to its previous day’s closing price of Rs 5592.50, giving a fall of about 3.5% in today’s trading session. The shares have given a return of 217% in the last 5 years and are trading at a PE of 42.2, whereas their industry PE is 20.8. 

About the Flight Cancellations and DGCA Probe

The wave of IndiGo cancellations began soon after India’s updated Flight Duty Time Limitation (FDTL) norms took effect on November 1, 2025. These rules require longer rest periods for pilots, restrict late-night landings, and tighten fatigue-management standards. While the changes were aimed at improving safety, IndiGo, the country’s largest airline with the most intensive flight network, struggled to adjust its scheduling and manpower in time. The result was an immediate strain on crew availability, triggering widespread cancellations across major airports like Delhi, Mumbai, Hyderabad and Bengaluru.

The shortage of crew quickly became the biggest pressure point. IndiGo has long followed a lean manpower model, keeping minimal extra pilots on standby. Once the stricter duty-time rules kicked in, pilots “timed out” more frequently, and the airline didn’t have enough buffer staff to replace them. Reports show that several flight cancellations in November were directly linked to duty-time and crew-compliance issues, suggesting IndiGo was underprepared for the transition. What could have been minor scheduling issues snowballed because of the airline’s massive network and tight turnaround times.

Operational problems added another layer of disruption. IndiGo pointed to a mix of technology glitches, airport congestion, ATC delays, seasonal fog, and general network stress, all of which slowed down operations further. Several daily flights in peak season, even small delays in one city can cause a cascading impact across the network. At busy airports like Delhi and Bengaluru, weather and air-traffic bottlenecks made it even harder for IndiGo to move aircraft and rotate crew on schedule, turning a staffing issue into a full-scale national aviation disruption.

The magnitude of the cancellations quickly drew the regulator’s attention. IndiGo recorded 1,232 flight cancellations in November, an unusually high figure for a single carrier in India. Passengers flooded social media with complaints, and the disruption sent shockwaves through the broader aviation system, from sudden fare spikes to overcrowded airports and reduced capacity on busy routes. With IndiGo holding the largest market share, its operational instability had consequences well beyond its own customers.

This is what led the DGCA to open a formal probe. The regulator wants to understand whether IndiGo failed to plan adequately for the new FDTL norms, whether crew rosters violated duty-hour rules, and why the airline didn’t build sufficient contingency buffers despite having advance notice of the regulatory change. The investigation is also checking whether the scale of cancellations could have been avoided with better scheduling practices and whether any safety-related fatigue concerns may have been ignored during the transition.

The situation has sparked a wider conversation about staffing, safety, and preparedness in India’s aviation industry. IndiGo’s size, which is usually its strength, had become a vulnerability when the new norms collided with operational stress and manpower shortages. The airline has started hiring more pilots and revising schedules to stabilise operations, while the DGCA’s probe may lead to new compliance expectations or penalties if lapses are confirmed. For now, the episode highlights how quickly a major airline can be pushed into crisis when regulatory pressure, operational challenges, and crew shortages all hit at the same time.

The aviation expert points out that the IndiGo crisis isn’t just about scheduling or manpower; it’s rooted in pilots raising genuine safety concerns. Some pilots who spoke up about the need for a stronger safety focus were reportedly removed, which has only increased frustration within the pilot community. He explains that pilots aren’t arguing about duty hours for personal comfort; they’re worried about fatigue and the risks it brings, especially since India’s accident figures are already higher than many other countries. With global benchmarks showing just 1.5 hull losses per million departures, he stresses that flight-time and rest-time rules exist for a reason. His message is simple: aviation safety can’t be negotiated, and duty-time limits must be respected no matter how much pressure airlines face.

Financials and others

The revenue from operations is at Rs 18,555 crore in Q2 FY26 versus Rs 16,970 crore in Q2 FY25, which is an increase of about 9 per cent YoY. However, in both quarters the company incurred a loss. The company has a good FII backing of about 28.44%, with government of singapore holding 3.25% stake and DII backing of 24.58%. 

IndiGo, run by InterGlobe Aviation, has grown into one of India’s most trusted airlines with a clear focus on making travel easier and more accessible for everyone. From the start, the company has aimed to be the country’s first choice for both domestic and international journeys, and over the years it has steadily built a strong reputation at home and abroad. 

Its mission revolves around connecting people through affordable fares, reliable on-time flights, and a smooth, no-nonsense travel experience. What began as a small operation has gradually expanded into a wide network that reaches cities across India and major destinations overseas. With a steadily growing fleet and a promise of simple, dependable service, IndiGo has positioned itself as a key player in India’s aviation story.

Written by Leon Mendonca

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