IndiGo shares decline nearly 2% amid reports on allowance hike for pilots; here's what investors should know

They also said that the tail-swap allowance was not provided earlier, and the hikes will be effective from January 1. Generally, a tail swap refers to replacing a scheduled aircraft with a different aircraft.

A lack of adequate planning in implementing the revised Flight Duty Time Limitations (FDTL) norms, which permit a lesser number of night landings for a pilot, has been attributed as a key reason for the disruptions that have forced the airline to cancel more than 1,600 flights on a single day.

Against the backdrop of new norms necessitating the deployment of more pilots for night operations, IndiGo has revised higher allowances doled out to the pilots.

For every hour beyond the 24-hour time frame, a captain will get ₹150 instead of ₹100 earlier, while the first officer will be paid ₹75 instead of ₹50 earlier. The night allowance per night hour for a captain and a first officer has been raised to ₹2,000 and ₹1,000, respectively.

'Deadhead' refers to a pilot flying as a passenger to another destination to operate a flight from there.

According to them, meal allowance during transit has been hiked to ₹1,000 from ₹500 for captains.

The sources also mentioned to PTI that the latest hikes are just about 25% of the allowances that were reduced for pilots, following the implementation of the second phase of the FDTL norms in November this year.

However, IndiGo has not shared any official statement regarding the matter.

IndiGo share price

Shares of InterGlobe Aviation have slipped 1.67% to an intraday low of ₹5,000.5 apiece on the NSE. At 10:57 AM, the stock was trading at ₹5,008 apiece, falling 1.15%.

The stock has fallen 3% in the last five trading sessions and over 16% over the last six months. However, on a year-to-date basis, IndiGo shares have gained nearly 9%.

The company’s market capitalisation stands at ₹1.94 lakh crore.