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Shares of IndiGo were trading lower by 2.98% at Rs 5,275 apiece on the NSE, which is 10.44 per cent lower in the past one week. Here’s what global brokerages say.
IndiGo Share Price Target.
Budget carrier IndiGo has cancelled all domestic departures from Delhi until midnight, worsening the ongoing nationwide operational crisis that has disrupted schedules for several days. Shares of India’s largest airline, after one of its biggest crises ever, have declined 10.5% in the past week. However, global brokerage firms Citi and Morgan Stanley have maintained their ‘buy’ rating to the stock. However, Morgan Stanley has lowered its FY27 and FY28 earnings target.
In a big relief to the carrier, the Directorate General of Civil Aviation (DGCA) has put its rule barring airlines from substituting weekly rest with leave in abeyance, offering immediate relief to carriers struggling with operational disruptions. The move comes amid major operational disruptions and airline requests for flexibility. With the order now withdrawn, airlines can once again use leave in place of weekly rest to stabilise rosters and reduce cancellations, while the DGCA reviews the situation and its impact on safety and operations.
Shares of Interglobe Aviation (the parent of IndiGo) recovered following the relaxation after falling almost 3 per cent intraday on Friday. The scrip was trading at Rs 5,394 apiece on the NSE, showing a fall of 0.78 per cent around 2:00 PM.
Apart from the Delhi airport, IndiGo has cancelled all flights till 1800 today and called off hundreds of flights from the Chennai airport.
According to PTI, the disruption at IndiGo has been widespread. More than 400 flights were cancelled on Friday alone, with delays reported across multiple major airports. Passengers encountered long queues and extended waiting times as the airline struggled to manage its network with reduced crew availability.
Operations deteriorated progressively during the week. Bengaluru logged over 100 cancellations on Friday morning, while Hyderabad saw more than 90. Other major airports reported significant delays as crew shortages and disrupted rosters led to bottlenecks in aircraft utilisation and turnaround times.
IndiGo’s on-time performance plunged to 8.5% as of December 4, 2025, according to aviation ministry data.
Regulators are closely tracking the situation. The civil aviation ministry and the Directorate General of Civil Aviation (DGCA) have been in constant communication with the airline as cancellations crossed 1,000 flights in recent days. Further schedule cuts are planned from December 8 to restore stability.
IndiGo Share Price: What Brokerages Say
Citi has maintained a Buy rating on IndiGo with a target price of Rs 6,500 per share, implying a 20% upside. The brokerage noted that IndiGo management has confirmed operational disruptions, and the airline is currently adjusting schedules to stabilize operations. Citi expects that recalibration steps over the next 48 hours should help normalize operations and improve on-time performance (OTP).
It added that OTP has dropped across airlines, with IndiGo’s complex network amplifying the impact. Citi also observed that the new FDTL (Flight Duty Time Limitation) norms have reduced rostering flexibility, making normalization a gradual process. While near-term disruptions are likely, Citi anticipates full normalization within a month.
However, it cautioned that a weaker INR against the USD and rising aviation turbine fuel (ATF) prices could put pressure on profits during the seasonally strong third quarter.
Morgan Stanley has maintained an Overweight rating on IndiGo but has revised its target price to Rs 6,540 from the earlier Rs 6,698. The brokerage noted that while IndiGo is facing rising cost headwinds, this challenge is industry-wide, with tight capacity conditions continuing.
Morgan Stanley expects gradual fare increases as a partial offset to these cost pressures. It has, however, cut EPS estimates for FY27 and FY28 by around 20% each, citing weaker profitability outlook. EBITDA estimates for FY26 to FY28 have also been reduced by 1–4%, as better yields are expected to only partially offset higher staff and maintenance costs.
What Triggered IndiGo’s Crisis?
The airline’s troubles stemmed from an acute shortage of cabin crew, which disrupted rostering and prevented IndiGo from operating its full schedule. As flights were cancelled and aircraft rotations fell out of sync, the disruption cascaded through key hubs such as Delhi, Bengaluru and Hyderabad.
The airline has sought temporary regulatory relief from new pilot duty-time rules as it works to normalise operations. IndiGo told regulators it expects “full operational normalcy” only by February 2026, raising questions about its ability to manage peak travel periods without further disruption.
Airline Seeks Regulatory Relief
IndiGo has asked the DGCA for a two-month exemption from new rules that restrict night-time landings between midnight and 6 a.m. In its statement, the DGCA said, “IndiGo has requested exemption from the night duty rules for Airbus A320 operations up to February 10, 2026.”
The regulator added, “IndiGo has assured DGCA that corrective actions are underway and that normalised and stable operations will be fully restored by February 10, 2026.”
The airline argued that the temporary reprieve is necessary to “reduce passenger inconvenience while maintaining safety margins” as it works to stabilise schedules.
Click here to add News18 as your preferred news source on Google. December 05, 2025, 12:38 IST
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