IndiGo Flight Cancellations: Share price drops, Rs 25000 cr valuation lost
IndiGo faces a severe crisis with over 600 flight cancellations, including all Delhi departures, leading to significant financial repercussions. Since December, the airline's stock has plunged 11%, wiping out approximately ₹25,000 crore from its market valuation. This sustained decline marks IndiGo's stock trading at its lowest level in over 160 days, reflecting mounting investor concerns.
New Delhi: The problems for the country's largest low cost airline IndiGo are not ending. On Friday, the airline is reportedly cancelling more than 600 flights. Meanwhile, the carrier has made it clear that all IndiGo flights flying from Delhi have been cancelled. Ever since the cancellation process started in IndiGo in December, more than 1000 thousand flights have been cancelled.
IndiGo has also had to bear the brunt of this in the stock market. In the month of December so far, IndiGo's stock has recorded a decline of 11 percent. Due to this, the valuation of the company has come down by about Rs 25,000 crore during this brief time of span.
IndiGo share price declines
In the month of December, IndiGo shares are witnessing a steady decline. According to BSE data, the company's stock fell by 3.15 percent during the trading session on Friday. After which the company's stock has come down to Rs 5,266. The airline stock is trading at its lowest level after 23 June. This means that the company's stock is seen to be trading at a lower level of 160 days.
If we talk about the last few days of December, then the company's stock has fallen by about 12 percent; and it is just the beginning of the month. According to BSE data, IndiGo's stock closed at Rs 5,902.70 on the last trading day of October, which has come down to Rs 5,266 on the 5th of December. This means that the company's stock has seen a decline of Rs 636.7, i.e. 10.80 percent.
IndiGo lost Rs 25,000 cr in valuation
Due to the fall in the company's stock in the month of December so far, the valuation has also seen a big decline. According to the data, when the stock market was closed on 28th November, the company's valuation was Rs 2,28,285.47 crore, which came down to 2,03,661.26 crore during the trading session on the 5th of December. This means that the company's valuation has lost Rs 24,624.21 crore.
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