Mumbai: Inter GlobeAviation Limited, the parent company of IndiGo, saw its market value shrink sharply on Monday as the airline continued to grapple with one of the worst travel disruptions in India’s aviation history.

The stock fell as much as 10 per cent to Rs4,842 -- its steepest single-day drop since February 2022 -- marking the seventh straight session of losses.

Over the past six trading days, the stock has now lost 16.4 per cent, wiping out nearly Rs37,000 crore in market capitalisation.

The sell-off intensified as investors reacted to the prolonged wave of large-scale flight cancellations and delays triggered by IndiGo’s transition to the revised flight duty time limitation norms.

Analysts warned that the disruptions are further weakening hopes of a strong earnings rebound.

Brokerage firm Investec maintained its ‘Sell’ rating on InterGlobe Aviation, with a price target of Rs4,040, saying that expectations of a third-quarter recovery have dimmed after a weak first half of FY26.

The crisis escalated after the airline struggled to meet the regulator’s deadline for transitioning to the new duty-time rules.

IndiGo and another carrier had sought more time on December 7, citing operational stress across multiple airports.

While the regulator granted a brief extension until 6 pm on December 8, it made it clear that no further leeway would be allowed. IndiGo has since said that its operations are improving and that its network is on track to stabilise by December 10.