InterGlobe Aviation shares focus as DGCA launches investigation into major service disruptions

Shares of InterGlobe Aviation (IndiGo) are expected to remain in focus on Thursday, December 4, after the Directorate General of Civil Aviation (DGCA) on Wednesday opened an investigation into the airline’s widespread operational disruptions. The regulator has sought an explanation for the large-scale service disruption and asked IndiGo to submit a mitigation plan to curb future cancellations and delays.India’s largest airline is facing heavy operational pressure this week, with more than 200 flight cancellations and hundreds of delays at major airports. The disruptions have led to long lines, stranded passengers and growing concerns about the airline’s ability to maintain operational stability during the peak winter travel period.

The airline has cited difficulties in adapting to newly introduced rules on pilot rest and duty hours, which continue to hamper schedules even a month after their introduction. On Tuesday, less than one in three IndiGo flights took off on time, a major blow for an airline whose brand emphasizes punctuality.Sensex, Useful Today; Watch all the live stock market action here

In a statement on December 3, IndiGo acknowledged the extensive disruption and apologized to customers. The airline attributed the operational chaos to a combination of technological issues, winter-related schedule shifts, adverse weather conditions, increased airspace congestion and the impact of updated Flight Duty Time Limitations regulations. The cascading effect of these factors was unforeseen, according to the company.

To stabilize operations, IndiGo has implemented calibrated schedule adjustments for 48 hours, aimed at restoring punctuality and reducing passenger inconvenience. The airline added that teams are working around the clock and affected travelers will be offered alternative travel options or refunds, if applicable.

On Wednesday, shares of InterGlobe Aviation closed up 1.80% at Rs 5,595.50. Over the past week, shares are down about 5.5%.

On a technical level, the daily RSI (14) stands at 38.9. While this is not yet in oversold territory – usually defined as below 30 – it does indicate weakening momentum. An RSI above 70 is generally considered overbought.

The moving averages also reflect a bearish setup, with InterGlobe Aviation trading below seven of the eight simple moving averages (SMAs), indicating continued downward pressure on the stock.

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