Indigo Airline is in a very bad situation these days, flights are getting canceled every day, people are worried and its direct impact is now falling on the pockets of the company owners as well. On one hand, DGCA has taken important decisions regarding Indigo Airline and on the other hand, Indigo is also facing huge losses.
In fact, the market cap of IndiGo’s parent company InterGlobe Aviation is continuously falling. The company has suffered a loss of 5 billion dollars so far. Not only this, the shares of InterGlobe Aviation closed down on eight of the last trading days, due to which the total market value of the company i.e. market cap reduced by about five billion dollars. The biggest blow has been suffered by the company’s founder and big promoter Rahul Bhatia, his net worth has fallen by a massive one and a half billion dollars and now after six months, for the first time, his net worth has slipped below ten billion dollars to just 9.1 billion dollars.
Heavy fall in Indigo shares
On Tuesday, there was a slight rise in IndiGo’s shares after seven consecutive days of decline, but that too did not last long. On Wednesday, December 10, a huge fall was again seen in the shares. The reason was that citing operational pressure, DGCA gave strict instructions to the airline to reduce its flight schedule by 10 percent. This crisis has become like a nightmare for IndiGo, where they already have to cancel thousands of flights due to crew shortage and new rules. In such a situation, passengers are also worried, there is an uproar at the airports and the government is also showing strictness.
Investors’ confidence in the market has also been shaken, due to which share prices are continuously falling. This decline is not just a matter of figures, but is raising questions on the entire image of the company.
Rahul Bhatia’s property fell
Rahul Bhatia’s wealth has always been directly linked to the ups and downs of Indigo. In August, when the airline’s shares reached a record high of Rs 6,155.50, his net worth was at an all-time high of $11.2 billion. Most of his wealth comes from his 36 percent stake in InterGlobe Aviation, apart from this he also has significant investments in InterGlobe Technology Quotient and InterGlobe Hotels. By September 2025, the total promoter stake declined to 41.6 percent, while public shareholding increased to 58.4 percent. Currently the market value of IndiGo is $20.7 billion, but this crisis has shaken everything.
Brokerage companies also warned
Brokerage company Jefferies has also said that IndiGo’s famous lean and high-utilization model, i.e. the way of flying more and more at less expense, is being hurt the most by the new pilot rest rules. This is because now the airline can also put pressure on pilots to fly continuously by replacing weekly off with leave. On top of this, the salary of the crew has also increased a lot and due to the weakening of the rupee, the burden of foreign expenses is also becoming heavy, which means IndiGo is surrounded from three sides and this is the reason why both its shares and profits are continuously falling.
Moody’s also termed the cancellations and delays of flights as “credit negative” and warned that the airline may face revenue loss due to refunds, compensation and possible penalties from the DGCA. Due to which there is a race among investors to sell the shares of this airline.
