New Delhi, Dec 8: Widespread flight disruptions at IndiGo are credit negative, and refunds and compensation could cause it “significant financial damage”, credit rating agency Moody’s warned on Monday.

In a note, Moody’s said that regulatory penalties from the Directorate General of Civil Aviation (DGCA) remain possible as the airline failed to plan for aviation rules communicated over a year earlier.

The crisis struck as the airlines entered their peak winter schedule, with “significant lapses in planning, oversight and resource management” as the Phase 2 of the Flight Duty Time Limitation (FDTL) rules were introduced on November 1, 2025, after being communicated more than a year earlier, it noted.

The rules reclassified midnight–6 a.m. duties as night duty and cut permissible landings in 24 hours from six to two or three. The agency said that IndiGo’s lean operating model lacked resilience to integrate the change, forcing a system‑wide schedule reset.

Over 1,600 flights were cancelled on December 5, and over 1,200 were grounded in November, with cancellations beginning on December 2. Moody’s said IndiGo is yet to fully restore normal operations.

IndiGo said it was set to operate over 1,800 flights on Monday, up from 1,650 on Sunday, adding that more than 4,500 bags have been delivered to respective customers, and “we are on track to deliver the rest in the next 36 hours”.

The airline said it expects a return to full schedules by mid-December, adding that it is working “round the clock” to normalise operations.

It has so far refunded Rs 827 crore to affected passengers, and the rest is under process for cancellations up to December 15.

Union Civil Aviation Minister K. Rammohan Naidu said in the Parliament on Monday that the government has initiated a thorough inquiry into the matter.

“IndiGo was supposed to manage the crew and roster…We will take strict action. We will set an example for every airline. If there is any non-compliance, we will take action,” he said on the floor of the Rajya Sabha.

Mumbai: air travel schedule remained heavily disrupted on Monday as IndiGo’s nationwide operational meltdown stretched into its seventh straight day, causing widespread cancellations across major Indian airports. While the crisis has affected passengers throughout the country, Mumbai, one of IndiGo’s busiest hubs, continued to witness major cancellations that derailed travel plans from early morning.

By 7 am, Mumbai’s Chhatrapati Shivaji Maharaj International Airport had recorded 32 IndiGo cancellations, 10 arrivals and 22 departures, impacting key routes to Chandigarh, Nagpur, Bengaluru, Hyderabad, Goa, Darbhanga, Kolkata and Bhubaneswar. Airport officials said the ripple effect of the disruptions was expected to continue through the day, adding to the nationwide tally of 309 flights impacted by Monday morning.

Across India, more than 224 cancellations were pre-planned and communicated to passengers, officials confirmed, as the airline attempted to manage the crisis strategically. IndiGo had reportedly begun processing 100 per cent refunds for passengers booked up to December 6, even as fresh cancellations continued to pile up.

Delhi’s Indira Gandhi International Airport reported the highest number of disruptions, with 134 IndiGo flights cancelled, 75 departures and 59 arrivals, making it the epicentre of the crisis. In response, the airport issued a public advisory urging passengers to check real-time flight status before heading out. Authorities said they were coordinating with airline teams to minimise chaos inside terminals.

Bengaluru’s Kempegowda International Airport confirmed 127 cancellations, 65 arrivals and 62 departures. Officials said the next status update would be provided later in the evening. Hyderabad’s Rajiv Gandhi International Airport recorded 77 disruptions, splitting between 38 arrivals and 39 departures.

At Srinagar Airport, 16 flights (8 arrivals and 8 departures) were cancelled, while Ahmedabad reported 18 cancellations by 8 am. Passenger crowds were also reported at terminals in Chennai, Jaipur and Mumbai, where many travellers waited for updates amid confusion.

Amid the escalating crisis, aviation regulator DGCA granted IndiGo CEO Pieter Elbers and COO Isidro Porqueras a one-time extension until 6 pm Monday to respond to the show-cause notice issued on December 6. The airline sought extra time citing “operational constraints linked to the scale of nationwide disruptions.” The DGCA, however, warned that no further extension will be granted, and said it would proceed ex parte if the reply is not submitted on time.

Mumbai, Dec 8: Indian stock markets started the week on a weak note on Monday as benchmark indices opened lower in the absence of strong domestic cues.

The Sensex slipped by 93 points, or 0.11 per cent, to trade around 85,619. The Nifty also drifted lower and was seen at 26,137, down 50 points or 0.19 per cent.

Analysts said that Nifty is expected to trade within a defined range today, with near-term resistance placed around 26,300-26,350, where profit-booking may emerge.

“On the downside, support is seen around 26,000-26,050, a zone that has held firm through recent consolidation,” experts said.

Several heavyweight stocks dragged the indices in early trade. Shares of Bajaj Finance, BEL, NTPC, Asian Paints, Power Grid, Trent, Sun Pharma, and ICICI Bank were among the biggest losers on the Sensex.

At the same time, some major technology and auto names helped limit the downside. Eternal, Tech Mahindra, TCS, Tata Motors PV, Infosys, HCL Tech and Tata Steel were the top gainers.

The broader market also showed signs of pressure. The Nifty MidCap index slipped 0.12 per cent, while the Nifty SmallCap index fell more sharply, declining 0.40 per cent.

Sector-wise, real estate, public sector banks, and pharmaceutical stocks were under the most selling pressure, with the Nifty Realty, PSU Bank, and Pharma indices falling between 0.3 per cent and 0.5 per cent.

On the other hand, the Nifty IT index managed to rise 0.5 per cent, supported by gains in large tech stocks. The Nifty Metal index also inched up by 0.2 per cent.

Analysts said that the market mood remained cautious in early trading as investors awaited fresh triggers to set the direction for the day.

“Given the prevailing conditions, a buy-on-dips strategy remains appropriate. Traders may consider adding long positions if Nifty pulls back toward 26,000-26,050 or if Bank Nifty finds stability above 59,400,” market watchers added.