IndiGo Faces ₹2,000 Crore Blow Due to Flight Cancellations; Passengers to Receive Vouchers

Indigo incurred a loss of approximately ₹2,000 crore due to large-scale flight cancellations in December 2025. Refunds, compensation, and operational expenses have exacerbated the company's financial challenges.

India's largest airline, IndiGo, has been a strong player in the domestic aviation market for the past few years. The company has won passengers' trust due to its low costs, on-time flights, and extensive network. However, operational problems that arose suddenly at the beginning of December 2025 dealt a severe blow to the company's financial health. According to an NDTV report, IndiGo incurred a direct loss of approximately ₹2000 crore due to a large number of flight cancellations and delays in December, causing a stir in the aviation sector.

What was the crisis in December?

In the first week of December 2025, IndiGo had to cancel a large number of flights due to adverse weather, crew shortages, and operational management challenges. According to the report, over 4500 flights were cancelled by December 12. More than 3 lakh passengers were affected by these cancellations. Passengers faced long waits at airports and had to rebook their tickets. This situation impacted the airline's image and trust.

Heavy burden of refunds and compensation

Following the flight cancellations, IndiGo had to arrange for passenger ticket refunds, hotel stays, meals, and transportation. Additionally, the Directorate General of Civil Aviation (DGCA) fined IndiGo ₹22.20 crore for violating regulations. The airline was also instructed to deposit a bank guarantee of ₹50 crore. Under Civil Aviation Requirements (CAR), passengers had to be compensated up to ₹10,000 in some cases, rapidly increasing the total cost.

Flight vouchers up to ₹10,000

After this incident, IndiGo incurred additional expenses to normalise operations. Significant amounts were also spent on returning lost baggage, courier services, and increasing ground staff. To appease passengers, the company announced flight vouchers of up to ₹10,000. It is estimated that more than 50% of affected passengers will receive some form of relief. Although IndiGo states that it is trying to recover from the situation, the impact of this crisis may be visible in the results of upcoming quarters.