Shares of InterGlobe Aviation, the parent company of low-cost carrier IndiGo, dropped over 3% in early trade on Thursday, extending its losing streak to five straight sessions. The country’s most valued aviation stock has fallen nearly 9% since November 27 as operational disruptions and a Directorate General of Civil Aviation (DGCA) probe weigh on investor sentiment.

On Thursday, IndiGo shares declined as much as 3.3% to ₹5,407.30 on the BSE, after ending 1.85% lower at ₹5,592.50 in the previous session. The share price of the airline major has fallen precisely 8.6% in five trading days, from ₹5,917.20 at the close on November 27.

At the time of reporting, shares of IndiGo were trading at ₹5,553, down 0.7%, paring most of the early losses. The airline saw strong volume as 33,000 shares changed hands over the counter on the BSE compared with the two-week average of 13,000 shares, dragging the market capitalisation to ₹2.14 lakh crore.

IndiGo’s share price touched its 52-week high of ₹6,225.05 on August 18, 2025, and its 52-week low of ₹3,946.40 on January 22, 2025. The counter has delivered a positive return of 27% in the past year and 2.5% in six months, while it has slid nearly 2% in a month.

Technically, IndiGo shares are trading above the 200-day moving average but below the 5-day, 20-day, 50-day, and 100-day moving averages. The stock saw a delivery volume of 7.13 lakh on December 3, up 70.57% compared with the 5-day average.

What triggered the sell-off in IndiGo shares?

The sustained selling in IndiGo shares was triggered by recent flight disruptions and the DGCA probe, as investors appear concerned about the immediate impact on cash flow, the airline’s ability to retain passengers, and potential risks to its overall reputation.

On Wednesday, the DGCA launched an investigation into widespread disruptions across IndiGo’s network after roughly 200 flights were cancelled and many more were delayed at major airports nationwide. The aviation watchdog has asked the airline to submit a report explaining the causes of the operational breakdown and present a plan to mitigate the issues.

The flight disruptions, which began on November 29, were largely caused by an urgent mandatory software patch for Airbus A320 aircraft issued under a global technical advisory. IndiGo had about 200 planes requiring the update, and while most were completed over the weekend, the rushed maintenance threw crew schedules off balance. This was compounded by the full enforcement of the new, stricter Flight Duty Time Limitations (FDTL) norms from November 1, which mandate longer rest periods and reduced flying hours for pilots.

According to PTI, at Delhi’s Indira Gandhi International Airport, at least 33 flights were cancelled, while Mumbai’s Chhatrapati Shivaji Maharaj International Airport saw over 51 cancellations. The disruptions extended into Thursday, with nearly 73 flights cancelled at Bengaluru’s Kempegowda International Airport, causing further inconvenience to passengers.

Following the cancellations, IndiGo issued an apology. “We acknowledge that IndiGo’s operations have been significantly disrupted across the network for the past two days, and we sincerely apologize to our customers for the inconvenience caused,” an IndiGo spokesperson said.

The spokesperson added, “A multitude of unforeseen operational challenges — including minor technology glitches, schedule changes linked to the winter season, adverse weather conditions, increased congestion in the aviation system, and the implementation of updated crew rostering rules (Flight Duty Time Limitations) — had a negative compounding impact on our operations in a way that was not feasible to be anticipated.”

To stabilise operations, the airline has started making calibrated adjustments to its schedule. “These measures will remain in effect for the next 48 hours and will help IndiGo gradually normalise operations and steadily improve punctuality across the network,” the spokesperson said.

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