Moody's Calls Indigo Flight Disruptions 'Credit Negative', Warns Likely Financial Dent

Global credit rating agency Moody's has called IndiGo's flight disruptions as credit negative, while signalling the likeliness of a significant financial damage due to constant flight delays. Highlighting yet another downside, Moody's also downgraded Indigo's issuer category score for human capital to 4 from 3. 

This comes after trouble surmounted for India's largest passenger carrier post the Flight Duty Time Limitation (FDTL) norms came into effect from November 1.

These rules, which prioritised the well-being of pilots, highlighted the shortage of personnel in IndiGo, leading to last-minute adjustments to its crew schedules and the nation-wide flight delays. 

The Union Civil Aviation Minister K Rammohan Naidu on Monday said that action would be taken against IndiGo after over 2,000 flight delays to "set an example" for airlines that violate regulations.

Also Read: India-US Trade Talks: Optimistic for 2025 Agreement

The crisis has sent IndiGo's shares down nearly 17% over the past seven days, wiping $4.3 billion off its market value. That included an 8.3% drop in the share price on Monday.

Meanwhile, the airlines in an official statement said, “Today, we are all set to operate 1,800 flights, connecting all stations we operate. All cancellations in today’s schedule were executed yesterday, ensuring advance notifications being sent to customers." 

The Gurgaon-headquartered airline has refunded Rs 827 crores while the remainder is slated to be processed by December 15, 2025, as per the company's statement. 

Further, IndiGo said it has facilitated stranded customers and arranged the following, between 1 to 7 December 2025 by providing over “9,500 hotel rooms and nearly 10,000 cabs/buses”.

On the other hand, IndiGo’s on-time performance dragged down to 68% in November, down from 84% in October as a result of the magnitude of domestic flight delays, which worsened post the impact of winter fog on key airports.