IndiGo credit rating stable despite operational disruptions

InterGlobe Aviation Limited (IndiGo) announced that ICRA Limited (ICRA) has released an update on its credit rating, affirming a "[ICRA]AA (Stable)" rating for its long-term bank facilities and "[ICRA]A1+" for its short-term facilities, effective December 10, 2025. This follows a period of significant operational disruption for IndiGo, marked by widespread flight delays and cancellations, peaking on December 5, 2025, with approximately 1,600 flights cancelled. The disruptions were primarily attributed to new Flight Duty Time Limitation (FDTL) norms, winter schedule enhancements, air traffic congestion, and adverse weather conditions.

Despite these challenges, ICRA noted that the Directorate General of Civil Aviation (DGCA) has granted temporary relief to IndiGo on compliance with the new night-duty norms until February 10, 2026, which is expected to support near-term recovery. The airline has also rebooted its network, systems, and rosters to improve stability. ICRA anticipates a significant impact on near-term financial performance due to revenue loss from cancellations, refunds, higher operating costs, and potential penalties.

However, ICRA emphasized that IndiGo's strong market position, healthy liquidity profile with unencumbered cash and equivalents of around INR 38,500 crore as of September 30, 2025, and robust growth prospects in the Indian aviation market provide a substantial cushion to absorb the near-term earnings pressure. The company's total bank line facilities amount to INR 9,000.00 crore.