IndiGo shares open 3% lower after company cuts Q3 guidance
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The shares of InterGlobe Aviation fell over 3% on Thursday, December 11, 2025, after the company cut its guidance for capacity and passenger unit revenues for the third quarter of the current financial year. IndiGo cut its guidance after the series of flight disruptions that happened last week, and the actions that were taken by the Directorate General of Civil Aviation (DGCA) including curtailment of its winter schedule.
The company's share price opened 3.23% lower at ₹4,650 apiece, and fell to an intraday low of ₹4,645 apiece on the NSE as against yesterday's close of ₹4,805.50 apiece.
"Measures undertaken to reset our operations resulted in cancellation of around 4,500 flights during that week. These cancellations have resulted in loss of revenue and we also continue to provide passenger support services for the operational disruptions for which additional expenses are being incurred," IndiGo said in an exchange filing on December 10, 2025.
The company has revised its Average Seat Kilometre (ASK), a key metric used by airlines to measure their passenger carrying capacity, to grow in high single to early double-digits compared to earlier guidance of growing in "high teens".
As a result, IndiGo has also revised its passenger unit revenues (PRASK) expectation to "mid-single digit downward moderation" as compared to "flattish to slight growth".
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"On December 9th 2025, DGCA has notified IndiGo to curtail scheduled flights for the Domestic Winter Schedule 2025 by 10%. This will have an impact on our capacity guidance for Q3FY 2025-26, Q4FY 2025-26 and FY 2025-26. We are in the process of complying with the DGCA notice and will provide impact on our capacity guidance for Q4FY26 and FY26 subsequently," IndiGo's statement added.
However, the company also said that the overall financial impact cannot be quantified at this stage. IndiGo has submitted a revised flight schedule to the DGCA; the aviation watchdog said that it's keeping a "regular vigil" on the airline to ensure real-time resolution for passenger grievances.
Earlier this week, brokerage Morgan Stanley cut IndiGo's FY27 and FY28 earnings per share estimates by 20%, maintaining its "Overweight" rating.
“IndiGo is seeing rising cost headwinds, but the entire industry will face these, and capacity is tight, so we expect air fares to rise gradually as a partial offset. Demand trends are improving, with November domestic PAX up 7% YoY vs -2% in F2Q26,” said Morgan Stanley.