IndiGo flights disruptions are ‘credit negative’ for airline: Moody’s Ratings

Amid the ongoing cancellation fiasco at the IndiGo Airlines, the Moody’s Ratings on Monday said the widespread disruptions in IndiGo flights are “credit negative” for the airline.

“Despite temporary reprieve, failure to effectively plan for new aviation regulations is credit negative.”

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The frequent cancellations could result in financial damage from loss of revenue as well as potential penalties for cancellations, Moody’s Ratings said.

“The disruptions are credit negative because IndiGo could face significant financial damage from loss of revenue because of flight cancellations, refunds and other compensation to affected customers, along with potential penalties imposed by DGCA,” Moody’s said.

The rating agency cited the airline’s significant lapses in planning, oversight and resource management as the primary cause, noting that the regulations had been communicated to the industry more than a year in advance.

IndiGo is currently rated Baa3 with a stable outlook.

Releasing a statement, the airline has said it has expedited the refund processes with Rs 827 crores refunded till now, and rest is under process for cancellations up to 15 December 2025.

“Over 4500 bags have been delivered to respective customers, and we are on track to deliver the rest in the next 36 hours,” the airlines said.

In its statement, the airlines said it has facilitated stranded customers and arranged over 9,500 hotel rooms, and close to 10,000 cabs/buses between 1 to 7 December.

“Today, we are all set to operate over 1800 flights, connecting all stations that we operate to. We have optimized our operations and managed to reduce the number of cancellations which are being notified to customers in advance, and our on-time performance (OTP) has also improved to 91% across the network,” the statement read.