Shares of InterGlobe Aviation Ltd. fell the most in eight months after India’s civil aviation regulator called on the chief executive to explain the flight cancellations that have roiled India’s largest airline.
IndiGo’s share price fell as much as 6.63%, the most since 7 April, to ₹5,015.00 apiece on the BSE, even as the benchmark S&P BSE Sensex traded up to 0.25% lower. According to a HT.com report, IndiGo has reported more than 300 flight cancellations so far on Monday versus over 1,000 on Friday. On Sunday, the airline said it’s on track to operate more than 1,650 flights, with on-time performance improving to 75%.
IndiGo is now facing higher costs due to the flight cancellations, along with added pressure from a weaker rupee and increased crew expenses, according to a note from Jefferies.