IndiGo faces over Rs 1,180 crore exposure after DGCA’s final order on December disruptions
In its order, the DGCA acknowledged that IndiGo’s operational recovery following the December disruptions was swift, with flight operations returning to normal levels within a short period.
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India’s aviation regulator, the Directorate General of Civil Aviation, has issued its final enforcement order against IndiGo over the large-scale flight disruptions in December 2025, putting the airline’s total financial exposure at more than Rs 1,180 crore when penalties, passenger compensation, refunds and compliance-linked safeguards are taken together, CNBC-TV18 reported.
As part of the order issued on January 16, the DGCA imposed monetary penalties of Rs 22.20 crore on IndiGo for systemic lapses and continued non-compliance with Flight Duty Time Limitation norms. This includes Rs 1.80 crore in one-time systemic fines and Rs 20.40 crore for continued non-compliance spanning 68 days, the report said.
Beyond the penalties, the regulator has directed IndiGo to furnish a Rs 50 crore bank guarantee under the IndiGo Systemic Reform Assurance Scheme. The guarantee will remain blocked and will be released in phases only after the DGCA verifies the airline’s compliance with mandated reforms across leadership oversight, manpower planning, rostering systems and digital operational resilience.
The largest component of IndiGo’s financial exposure stems from passenger-facing costs. The airline has informed that it will pay more than Rs 500 crore in compensation to severely affected passengers whose flights were cancelled within 24 hours of departure and who were left stranded at airports during the disruption period.
In a statement, IndiGo informed that it will provide over Rs 500 crore in compensation to impacted passengers and has also extended an additional Gesture of Care voucher worth Rs 10,000 per passenger, valid for 12 months. The voucher applies to customers whose flights were cancelled or delayed by more than three hours between December 3 and December 5, 2025.
In addition, IndiGo has processed Rs 610 crore in ticket refunds up to December 7, returned to passengers through the original mode of payment. The airline has indicated that this figure is expected to increase further, as refunds processed after that date have not been included in the disclosed amount.
While refunds do not affect profitability, they represent a substantial cash outflow. Taken together, IndiGo’s direct profit-and-loss impact stands at over Rs 522 crore, comprising penalties and passenger compensation. When refunds and the Rs 50 crore bank guarantee are included, the airline’s overall financial exposure exceeds Rs 1,180 crore, with the final figure likely to rise as additional refunds are accounted for.
In its order, the DGCA acknowledged that IndiGo’s operational recovery following the December disruptions was swift, with flight operations returning to normal levels within a short period. The regulator stated that no further punitive action is being initiated at this stage, with future oversight linked to compliance milestones under the reform framework rather than additional penalties.
The DGCA attributed the December disruptions to over-optimisation of operations, inadequate roster buffers and shortcomings in planning and management oversight, and underscored the need for sustained systemic reforms to prevent a recurrence.
