IndiGo shares fall nearly 2% as airline sees market share loss, hikes pilot allowance

IndiGo shares fall nearly 2% as airline sees market share loss, hikes pilot allowance

Shares of InterGlobe Aviation, the parent of IndiGo airline, fell nearly 2% on December 30 as it hiked pilot allowance and witnessed market share loss in November.

Market share of IndiGo fell slightly in November, according to data from the Directorate General of Civil Aviation. IndiGo has also introduced new pilot allowances and raised some existing ones, in a sign that country's largest airline is seeking to boost pilot morale weeks after mass flight cancellations linked to poor roster planning left passengers stranded.

The airline will increase layover allowances to Rs 3,000 from Rs 2,000 for captains, and to Rs 1,500 from Rs 1,000 for first officers, according to an email sent to pilots by Ashim Mittra, senior vice president for flight operations.

Allowances for "deadheading" - a practice where airline crew travel as passengers to position themselves for future duty - will be raised to Rs 4,000 from Rs 3,000 for captains, and by Rs 500 to Rs 2,000 for first officers, the email said.

For every hour beyond the 24-hour time frame, a captain will get Rs 150 from Rs 100 earlier, while the first officer will be paid Rs 75 instead of Rs 50 earlier.

The night allowance per night hour for a captain and a first officer has been raised to Rs 2,000 and Rs 1,000, respectively.

IndiGo, according to government data, employs roughly 5,000 pilots.

At 11:45 am on December 30, IndiGo shares were trading 1.7% lower at Rs 4,999 apiece

The airline, which commands over 60% domestic market share, is facing increased regulatory scrutiny and a competition probe after it cancelled about 4,500 flights earlier this month, leaving hundreds of thousands of passengers stranded all over India and throwing airports into chaos.

The revision in pilots' pay comes amid the adjustments made by the airline to comply with the Flight Duty Time Limit norms by February after the new regulation massively disrupted the airline's operations from late November to early December.

So far in December, the stock has fallen nearly 15%. According to data released by the Directorate General of Civil Aviation, IndiGo's market share fell to 63.6% in November from 65.6% in October. Earlier this month, the regulator had instructed IndiGo to cut its winter schedule flights by 10% after widespread flight delays and operational disruptions.

Indigo’s market share declined by 200 bps MoM to 63.6% in November 2025. SpiceJet’s market share rose by 110 bps MoM to 3.7%, supported by additional slots, fleet expansion, and higher ASKs in the winter schedule. The Air India Group’s market share increased by 100 bps MoM to 26.7%, while Akasa’s shed by 50bps MoM to 4.7%.

"Festive season demand boosted domestic air traffic in November, though momentum moderated towards late November and early December due to operational disruptions at IndiGo," Emkay Global Financial Services said in a report.

OTP (on-time performance) declined sequentially across key airlines in Nov-25, due to weather-related disruptions. Indigo’s OTP declined to 69.0% from 84.1%, largely owing to the operational disruption, while Akasa topped the punctuality chart with OTP at 72.2%.

Emkay said it expects ATF prices for Jan-25 to decline by 5-6% MoM.