Interglobe Aviation (IndiGo) share price continues to fall, tanked nearly 7% in Monday's trading session after the Delhi Airport said that IndiGo flights may continue to experience delays and after receiving show cause notice from aviation watch dog last week.
The stock is poised for a seventh consecutive day of decline following the cancellation of thousands of flights last week, which left passengers stranded and prompted the government to intervene to curb a sharp rise in airfares triggered by the situation.
On the other hand, SpiceJet share price rallied as much 12%, surged for second day straight amid IndiGo's flight disruptions. The stock rallied after several flight delays and cancellations at competitor InterGlobe Aviation, resulting in increased bookings for SpiceJet flights.
What's behind the fall?
The DGCA has issued a show cause notice to assess the airline’s readiness, even though it was informed in advance about the updated duty regulations. Any additional measures by the regulator might increase compliance expenses and impose temporary operational restrictions on the airline, which could heighten concerns among investors.
The regulator stated in its notice that the airline exhibited "serious shortcomings in planning, supervision, and resource management," which led to major disruptions in service. It also pointed out that the main reason for the disruption was IndiGo's inability to properly arrange for sufficient staffing, duty hours, and scheduling according to the updated Flight Duty Time Limitations (FDTL) regulations.
The Delhi Airport said in a statement on Sunday, "IndiGo flights may continue to experience delays. Passengers are advised to check the latest flight status with their airline before heading to the airport to avoid any inconvenience."
"Our teams are working closely with all stakeholders to minimise disruptions and ensure a smooth travel experience. For assistance, including medical support, please visit the information desk where our on-ground staff is ready to help," the statement read.
IndiGo Q2 results 2025
InterGlobe Aviation, the parent company of IndiGo, India's largest airline, released its Q2 results for the September quarter, reporting a net loss of ₹2,582 crore, compared to a loss of ₹987 crore in the same period last year.
The airline's performance was weighed down by increased foreign exchange expenses, despite a 9.3% year-on-year rise in revenue from operations to ₹18,555 crore, supported by effective operational execution and optimized capacity management.
During the quarter, capacity rose by 7.8% to 41.2 billion, and passenger numbers increased by 3.6% to 28.8 million. However, at the operating level, Earnings before finance income and cost, tax, depreciation, amortization, and aircraft and engine rental (EBITDAR) declined to ₹1,114 crore from ₹2,434 crore, with the EBITDAR margin falling to 6% compared to 14.3% in the same quarter last year.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
