IndiGo cuts capacity guidance after 4,500 flight cancellations, stock opens 3% lower

IndiGo is in the process of complying with the regulator’s notice and will update its Q4 and FY26 guidance later. As a result, IndiGo said it expects a “downward moderation” to its earlier Q3 guidance on a year-over-year basis.
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REUTERS/FRANCIS MASCARENHAS

IndiGo’s share price opened 3 per cent lower on Thursday after the airline warned of a moderation in its capacity and revenue outlook for Q3 FY25-26 following significant operational disruptions in early December.

At 10.36 am, shares traded flat at ₹4,802, after opening 3 per cent lower at ₹4,650 against the previous close of ₹4,805.50 on the NSE.

In a stock exchange filing, IndiGo said that despite reinstating operations across its optimised network, the first week of December saw “significant disruption,” forcing the cancellation of around 4,500 flights. The airline said the cancellations led to a loss of revenue and additional expenses as it continued to offer passenger support services.

The situation was compounded on December 9, 2025, when the DGCA directed IndiGo to curtail scheduled flights for the domestic winter schedule by 10 per cent. The airline said the directive will affect its capacity guidance for Q3 FY25-26, Q4 FY25-26 and the full year FY25-26.

IndiGo is in the process of complying with the regulator’s notice and will update its Q4 and FY26 guidance later.

As a result, IndiGo said it expects a “downward moderation” to its earlier Q3 guidance on a year-over-year basis. Capacity growth measured in ASKs, earlier projected in the high-teens range, has now been revised to high single to early double-digit growth. Passenger unit revenues (PRASK), previously expected to see flattish to slight growth, are now projected to face a mid-single-digit downward moderation.

IndiGo added that it continues to monitor the revenue environment and that the overall financial impact cannot yet be quantified. The airline reiterated its commitment to assisting customers and ensuring compliance with FDTL norms and safety regulations, noting that operations have been brought under control in the past two days.

Published on December 11, 2025