IndiGo Lowers Q3 Capacity Outlook After 4,500 Cancellations; Shares Drop 3%

Indian low-cost carrier IndiGo experienced a 3 percent drop in its share price on Thursday following a revised outlook for the third quarter of fiscal year 2025-26. The airline issued a warning of a moderation in both its capacity and revenue projections, attributing this adjustment to significant operational disruptions encountered earlier in December. This announcement immediately impacted investor confidence, leading to the stock market decline. The operational challenges specifically involved approximately 4,500 flight cancellations, which severely affected the airline's schedule and service delivery. These widespread disruptions forced IndiGo to re-evaluate its expected performance for the quarter, indicating a period of reduced operational output and a likely impact on its financial results. The revised guidance reflects the direct consequences of these extensive service interruptions on the carrier's planned expansion and profitability.