Moody's downgrades IndiGo's human capital, warns of revenue loss

• Moody's warned IndiGo of credit negative implications due to inadequate planning and weak preparedness for regulatory changes.
• Moody's downgraded IndiGo's human capital issuer score to 4 from 3, citing the adverse impact of slower hiring.
• Recent operational disruptions, including 1,600 flight cancellations on Dec 5, exposed planning gaps and could lead to revenue loss and penalties.
• The DGCA issued show-cause notices to IndiGo's CEO and COO and granted a temporary exemption from Flight Duty Time Limitation rules until Feb 10, 2026.
• IndiGo's shares fell 8.28% on December 8, and Moody's expects negative impact on FY26 profitability.

Why It Matters: IndiGo's operational failures threaten its financial health and service reliability.