IndiGo shares plunge by 7% today: What's the reason?
What's the story
InterGlobe Aviation, the parent company of IndiGo, is witnessing a major fall in its share price. The stock has plunged nearly 7% in today's trading session on the back of continuous flight delays and cancellations. It is now trading at ₹5,154.20 per share. The situation has left passengers stranded and prompted government intervention to avoid a steep hike in airfares due to the crisis.
Regulatory scrutiny
DGCA issues show cause notice to IndiGo
The Directorate General of Civil Aviation (DGCA) has issued a show cause notice to IndiGo, questioning the airline's preparedness in light of the new duty regulations. This comes after thousands of flights were canceled last week. The regulator's further action could lead to increased compliance costs and temporary operational restrictions on the airline, further alarming investors.
Passenger advisory
Delhi airport warns of potential flight delays
The Delhi Airport has also warned that IndiGo flights may continue to be delayed. "Passengers are advised to check the latest flight status with their airline before heading to the airport," it said in a statement on Sunday. The advisory comes amid ongoing disruptions in services, further complicating travel plans for many.
Customer support
IndiGo's response to ongoing disruptions
In light of the disruptions, IndiGo has assured its passengers that they are working with all stakeholders to minimize these inconveniences. "For assistance, including medical support, please visit the information desk where our on-ground staff is ready to help," the airline said in a statement.