IndiGo Shares Dive 7% as Pilot Rostering Crisis Hits Profits

• IndiGo shares plummeted by 10% due to massive flight cancellations and regulatory scrutiny.
• The crisis stemmed from operational unpreparedness for new DGCA Flight Duty Time Limitations (FDTL) and rostering issues.
• Compliance with FDTL is expected to increase operating expenses, potentially requiring 20% more pilots and cutting profit before tax by 25%.
• The DGCA issued a show-cause notice to IndiGo's CEO, citing inadequate staffing and crew rostering.
• Some brokerages maintain a "Buy" rating, but foresee an adverse cost curve and near-term earnings volatility.

Why It Matters: New pilot rules may increase air travel costs and cause disruptions.