New Delhi: Moody’s Investors Service has termed the recent week-long flight disruptions at InterGlobe Aviation Ltd (IndiGo) as “credit negative”, saying the airline failed to effectively plan for the new Flight Duty Time Limitation (FDTL) regulations, according to an issuer comment released on December 8.
The rating agency—while maintaining IndiGo’s Baa3 (stable) issuer rating—said the airline suffered “significant lapses in planning, oversight and resource management” despite the industry having known about the revised duty-time norms for over a year. The disruptions, compounded by winter fog and operational congestion, led to around 1,600 cancellations in a single day, over 1,200 cancellations in November, and a drop in on-time performance from 84% in October to 68% in November.
Moody’s warned that IndiGo faces potential financial damage from lost revenue, refunds, customer compensation, and possible regulatory penalties, even as the DGCA issued show-cause notices to CEO Pieter Elbers and COO Isidro Porqueras. The agency said uncertainty persists around leadership continuity and reputational impact, especially on the airline’s international code-share arrangements.
The DGCA has granted IndiGo a temporary exemption from the new FDTL rules until February 10, 2026, subject to 15-day operational reviews. The airline must now file detailed compliance reports and submit a 30-day roadmap to achieve full adherence.
Moody’s also downgraded IndiGo’s human capital issuer score to 4 from 3, citing slower hiring and heightened exposure to social risks. However, the agency noted that IndiGo’s long-term fundamentals—strong market share, robust demand outlook, and leverage sustainably below 3.5x—continue to support the existing rating.
IndiGo disclosed the Moody’s comment to stock exchanges on Monday, saying the publication has been taken o n record.