IndiGo, India’s largest airline, is under heavy market and passenger scrutiny after cancelling more than 550 flights on Thursday, marking the third consecutive day of operational disruptions. The fallout has hit investor confidence hard, with InterGlobe Aviation shares falling nearly 6% in two sessions—from ₹5,794 on December 2 to ₹5,437 on December 4. On Wednesday alone, the stock declined 2.77%, reflecting widespread concerns about the airline’s operational stability.

Global brokerage Morgan Stanley responded by cutting its target price for InterGlobe Aviation by more than 2%, lowering it from ₹6,698 to ₹6,540. While the firm revised down its EBITDA and earnings estimates, it maintained an ‘overweight’ rating, suggesting confidence in IndiGo’s long-term fundamentals despite short-term turbulence.

IndiGo has attributed the crisis to a combination of cabin-crew shortages, rostering issues, and technology-related constraints, which have disrupted scheduling across its network. To manage the situation, the airline has begun implementing planned service cancellations to stabilize operations. However, additional flight disruptions are expected over the next 2–3 days.

The airline’s on-time performance has deteriorated sharply, plunging from 35% on Tuesday to just 19.7% on Wednesday. This comes as IndiGo operates nearly 2,300 flights daily, making it the backbone of India’s aviation network. The disruptions have caused widespread chaos at airports, with thousands of passengers facing delays, cancellations, and lack of clarity on rebooking options.

The financial impact has been steep. IndiGo’s market capitalization has eroded by approximately ₹25,000 crore since the disruptions began. The falling stock price has affected over 2.9 lakh retail shareholders, adding to the broader operational fallout.

Despite the crisis, analysts emphasize that there is no indication of IndiGo facing acquisition pressure. The issues appear operational rather than financial, and the airline is focused on restoring reliability.

The coming days will be critical as IndiGo works to stabilize its network, regain passenger trust, and reassure markets of its operational resilience.