IndiGo Shares Slide 17% After 4,200 Cancellations; Airline Lowers Q3 Outlook; Emkay Maintains BUY; Check TP

IndiGo shares today were trading flat even as India's largest airline slashed its Q3 FY 2025-26 guidance after severe operational disruptions and thousands of flight cancellations in the last 10 days. As of 1 pm, the IndiGo share price today stood at Rs. 4,803.50, down 0.042%, with the stock slipping nearly 11% in the past five days amid the ongoing chaos surrounding flight cancellations and network disruptions.

In its regulatory filing dated December 10, 2025, the airline said it experienced significant operational disruption during the first week of December, forcing the cancellation of nearly 4,500 flights. IndiGo said these large-scale cancellations resulted in a loss of revenue and additional expenses due to passenger support services, affecting its profitability outlook.

The airline added, "On December 9th, 2025, DGCA 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 Revises Q3 FY26 Guidance

IndiGo said the overall financial impact of the disruptions "cannot be quantified at this stage" but confirmed that its earlier projections will now see downward moderation. The updated guidance shows:

Capacity growth (ASKs): Previously expected high-teens growth, now revised to high single-digit to early double-digit growth.

Passenger unit revenues (PRASK): Earlier expected to be flattish to slightly positive, now expected to see a mid-single-digit downward moderation.

IndiGo Says Operations Compliant With Safety Norms

Despite the turbulence, the airline stressed that all operations remain fully compliant with FDTL norms and aviation safety regulations, as they have been for the past two decades. IndiGo also stated it is working on a war footing to address customer queries, assist impacted passengers, and stabilise services.

IndiGo Share Price Target Cut to Rs. 6,300 by Emkay

In its latest report, Emkay Global sharply trimmed its Indigo share price target to Rs. 6,300, citing heavy cancellations, regulatory scrutiny, and expected revenue and profitability cuts for FY26. The brokerage still maintains a BUY rating, saying, "IndiGo has faced an "unprecedented crisis" with more than 4,200 flight cancellations in just eight days, amounting to 23% of the airline's 2,300+ daily flights scheduled for December 2025. The sudden collapse in operations has become one of the biggest disruptions in the airline's history.

Despite the crisis, Emkay believes IndiGo's market leadership and the likelihood of operational normalisation make the stock attractive over the long run.

"While Indigo runs the risk of lost reputation and regulatory support, its position in the Indian aviation market is vital, and quick normalisation of operations should revive the momentum. A penalty could be a near-term action by the GoI; Indigo may also be directed to further compensate the affected parties. GoI may want to bring in more players, though the global aviation supply chain scenario remains challenging," the report further mentions.

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