The shares of InterGlobe Aviation, the parent company of IndiGo, crashed nearly 10 percent on December 8, extending losses for the seventh consecutive session. Brokerages have cautioned investors, with some reducing their target prices for the stock as the airline continues to face massive disruptions.

The shares of the company were trading at Rs 4,842.50 apiece in the afternoon hours of Monday, the lowest level seen by the stock in seven months.

The stock has now extended decline for the seventh consecutive session. The company's market capitalisation has declined over Rs 37,000 crore during the losing streak, slipping below the Rs 2-lakh crore mark.

IndiGo’s flight cancellations continued to persist on Monday, leading to widespread chaos at India's major airports. Delhi airport issued an advisory in the early hours of the day, stating that schedules remain unstable as the airline works to restore normal operations.

Over six days, the airline cancelled more than 2,000 domestic and international flights. Directorate General of Civil Aviation (DGCA) has sent a show-cause notice to IndiGo CEO Peter Elbers over large-scale disruptions and alleged non-compliances.

The show-cause notice, issued to CEO Pieter Elbers, accused the airline of “significant lapses in planning, oversight and resource management” and a failure to adequately prepare for new Flight Duty Time Limitations (FDTL) norms.

A significant factor behind the chaos is a sharp shortage of crew, particularly pilots, following the introduction of revised Flight Duty Time Limitation (FDTL) norms last month. The new rules mandate more rest hours and humane rosters, but IndiGo has been struggling to realign its network accordingly.

Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu today said that the IndiGo crisis was driven by problems in its crew rostering and internal planning system. Addressing the Rajya Sabha, Naidu said that strict Civil Aviation Requirements (CARs) are in place for passengers who have faced difficulties due to delays and cancellations.

"I want more players in the industry. Today, India has a capacity of five big airlines and there has been an effort from the ministry to encourage more airlines," he added.