Shares of IndiGo rose on Wednesday after the airline announced that Chief Executive Officer Pieter Elbers had resigned, with company co-founder Rahul Bhatia stepping in as interim chief.

The airline’s stock climbed as much as 3% during trading to 4,512.90 rupees, recovering slightly after falling more than 21% since early December when the carrier cancelled thousands of flights during a major operational crisis.

Analysts say the leadership transition is expected to be smooth. Brokerage firm Jefferies noted that previous leadership changes at the airline had been handled efficiently, with strong oversight from the founder helping maintain stability.

Another financial institution, HSBC, said the airline is unlikely to make major strategic shifts. Instead, Bhatia is expected to focus on improving operational efficiency and restoring the airline’s public image.

IndiGo currently controls around 65% of the aviation market in India, the world’s fastest-growing aviation sector. However, the airline faced its biggest crisis in its 20-year history in December, when it cancelled around 4,500 flights due to inadequate planning related to pilot rest and duty regulations, leaving tens of thousands of passengers stranded.

India’s aviation regulators later criticised Elbers for what they described as inadequate oversight of flight operations and crisis management.

Although the airline said Elbers resigned for “personal reasons,” Bhatia referenced the December disruption in an internal memo outlining his interim leadership role and the company’s priorities moving forward.

Meanwhile, airline stocks globally stabilised after comments from Donald Trump suggesting the ongoing conflict in the Middle East could end soon. Lower geopolitical tensions may help ease fuel price volatility—an important factor for airlines, as fuel typically accounts for about 20–25% of their operating costs, making it the second-largest expense after labour.