Indigo Faces $5B Loss; Founder Rahul Bhatia's Net Worth Plummets $1.5B

• Indigo's parent company, InterGlobe Aviation, has incurred a market cap loss of approximately $5 billion.
• Founder Rahul Bhatia's net worth dropped by $1.5 billion, falling to $9.1 billion for the first time in six months.
• DGCA ordered Indigo to cut 10% of its flight schedule due to operational pressure, adding to existing cancellations from crew shortages and new rules.
• The airline's financial woes are compounded by new pilot rest rules, increased crew salaries, and the impact of a weaker rupee on foreign expenses.
• Moody's warned that flight cancellations and delays are "credit negative," potentially leading to revenue losses from refunds, compensation, and DGCA penalties.

Why It Matters: Indigo's operational crisis leads to huge financial losses, impacting its founder's wealth.