Why IndiGo shares are up 4% despite DGCA's ₹22cr fine
What's the story
IndiGo's shares rose by 4% today, despite the airline being slapped with a ₹22 crore fine by the Directorate General of Civil Aviation (DGCA) over flight cancellations last month. The penalty is among the largest ever imposed by the regulator on any airline for disrupting flights. Between December 3 and 5, 2025, IndiGo canceled over 2,500 flights and delayed nearly 1,850 flight across India.IndiGo's shares declined 14.2% that month, its steepest fall since October 2024.
Regulatory action
DGCA's investigation reveals operational deficiencies at IndiGo
The DGCA's investigation found several deficiencies in IndiGo's operations after stricter pilot rest and duty rules were implemented last year. The regulator imposed a ₹30 lakh fine for the airline's failure to establish a scheme for compliance with flight time limits, duty periods, and rest periods. Another ₹30 lakh penalty was imposed for "failure of accountable management to ensure overall functioning" according to DGCA standards.
Additional fines
IndiGo faces penalties for operational control lapses
IndiGo also faced a ₹30 lakh fine for "improper delegation and exercise of operational control responsibilities contrary to approved methods." The airline has been directed to provide a ₹50 crore bank guarantee in favor of the DGCA, as part of an assurance scheme titled IndiGo Systemic Reform Assurance Scheme (ISRAS). This is aimed at ensuring compliance with directives and long-term systemic correction.
Compliance measures
DGCA's assurance scheme linked to reform implementation
The ISRAS is linked to the phased release of the bank guarantee, which is strictly tied to DGCA-verified implementation of reforms. The reforms will be across four key elements: leadership and governance, manpower planning, rostering and fatigue-risk management, digital systems and operational resilience, board-level oversight. Release of the bank guarantee will depend on independent verification by DGCA at each stage.
Executive warnings
DGCA's probe leads to warnings and operational changes
The DGCA's probe led to warnings being issued to IndiGo's CEO Pieter Elbers for inadequate oversight of flight operations and crisis management. Warnings were also issued to COO Isidre Porqueras, Senior Vice President (OCC), Deputy Head of Flight Operations, AVP Crew Resource Planning, and Director Flight Operations for operational lapses. Following last month's disruptions, the regulator had cut IndiGo's winter schedule flights by 10%.