IndiGo faces ₹1,180cr hit after DGCA's final enforcement order
What's the story
India's aviation regulator, the Directorate General of Civil Aviation (DGCA), has issued a final enforcement order against IndiGo. The move comes after widespread flight disruptions in December 2025. The airline now faces a potential financial impact of over ₹1,180 crore. This includes penalties, passenger compensation, refunds, and compliance-linked safeguards imposed by DGCA.
Penalty details
DGCA imposes monetary penalties on IndiGo
The DGCA has slapped a ₹22.20 crore fine on IndiGo for systemic lapses and continued non-compliance with Flight Duty Time Limitation (FDTL) norms. The penalty includes a one-time systemic fine of ₹1.80 crore and ₹20.40 crore for continued non-compliance over 68 days. In addition to the fines, the regulator has asked IndiGo to provide a ₹50 crore bank guarantee under the IndiGo Systemic Reform Assurance Scheme (ISRAS).
Financial obligations
Compensation and refund commitments
IndiGo has committed to paying over ₹500 crore in compensation to passengers who were severely affected by last-minute flight cancelations and stranded at airports. The airline has also processed ₹610 crore in ticket refunds till December 7, which were returned through the original mode of payment. This figure is expected to increase as refunds processed beyond that date are not included in the disclosed number.
Overall impact
Total financial exposure exceeds ₹1,180 crore
IndiGo's direct profit-and-loss impact is over ₹522 crore, including compensation and penalties. With refunds and the bank guarantee included, the overall financial exposure exceeds ₹1,180 crore. The final number could be higher as more refunds are considered. The DGCA acknowledged IndiGo's swift operational recovery after the December disruptions but attributed them to over-optimisation of operations and planning deficiencies.
Regulatory measures
DGCA's order and future oversight
The DGCA has not initiated any further punitive action at this stage. Future oversight will be based on compliance milestones under the reform framework, rather than new penalties. The regulator has cautioned IndiGo's CEO for inadequate overall oversight of flight operations and crisis management, along with warnings to other senior officials of InterGlobe Aviation, IndiGo's parent company.