InterGlobe Aviation Earnings Slashed Amid IndiGo Chaos, Weak Rupee, Pilot Rules

• IndiGo's parent, InterGlobe Aviation, faces earnings estimate cuts due to a weaker rupee and widespread flight cancellations.
• The airline reported a net loss of Rs 2,582.10 crore in the September quarter, largely due to a Rs 2,892 crore forex loss from rupee depreciation.
• Hundreds of flights have been cancelled since late November, causing chaos and potentially cutting 5-7% off IndiGo's quarterly topline.
• Disruptions are attributed to inadequate preparation for new pilot fatigue management rules, leading to increased pilot salaries and further earnings cuts.
• IndiGo is expanding international routes to create a natural hedge against currency fluctuations and has revised its capacity guidance to "mid-teens."

Why It Matters: IndiGo's challenges could impact air travel costs and reliability for passengers.