IndiGo cuts Q3 FY26 guidance on cancellations; shares rebound from dip

• IndiGo shares faced pressure after the airline cut its financial guidance for Q3 FY2026 due to extensive flight cancellations.
• The Q3 FY2026 ASK (Average Seat Km) growth guidance was reduced from "high teens" to "high single digit" or "early double digit."
• PRASK (Passenger Unit Revenue per Available Seat Km) guidance was also lowered to a "mid-single digit" decline.
• Around 4,500 flights were cancelled, causing revenue loss and increased costs for passenger support.
• Brokerage firms reduced target prices but maintained a bullish outlook; Morgan Stanley added IndiGo to its focus list.

Why It Matters: IndiGo's operational woes are hurting its financial outlook and investor confidence.