IndiGo has completed the processing of all refunds linked to flight cancellations between December 3 and 5 and has extended additional support to affected passengers, the aviation regulator said on Friday, as the fallout from last month's widespread disruptions continues to draw scrutiny. The Directorate General of Civil Aviation (DGCA) said it has been in constant engagement with IndiGo to ensure that refunds and compensation obligations arising from the cancellations were met.
The cancellations, the regulator said, were triggered by 'operational disruptions' that resulted in large-scale schedule instability across the airline's network.
According to the DGCA, IndiGo has now fully cleared all refunds for passengers whose flights were cancelled during the three-day period. In addition, travellers whose flights were cancelled within 24 hours of scheduled departure remain eligible to claim compensation under existing passenger protection norms.
To further support impacted customers, IndiGo has expanded its “Gesture of Care” initiative. Under the plan, passengers whose flights were cancelled or delayed by more than three hours between December 3 and 5 will receive two travel vouchers worth Rs 5,000 each. The vouchers will be valid for 12 months, the regulator said.
The December disruptions triggered widespread passenger dissatisfaction and drew national attention, as stranded travellers shared complaints and visuals across social media platforms. The episode is also expected to weigh on IndiGo's December-quarter earnings, which are due to be announced shortly.
Market reaction to the turmoil was swift. IndiGo's shares saw a sharp sell-off following the disruption, with the stock ending last year about 20% lower. The decline wiped out an estimated $5 billion in market value, reflecting investor concerns over operational resilience and regulatory action.
In response, the DGCA has taken several corrective steps. These include imposing limited, temporary reductions in IndiGo's flight schedules, directing certain internal flight inspectors overseeing the airline to step aside, and stationing regulatory staff at the airline's headquarters. The watchdog has also issued show-cause notices to the carrier, seeking explanations for the lapses.
To prevent capacity shortages arising from the cuts imposed on IndiGo, the DGCA asked other airlines — such as Air India, Akasa Air and SpiceJet — to deploy additional aircraft and flights where possible.
While refunds and vouchers may ease passenger grievances, the December episode has underscored the operational pressures facing India's largest airline as it scales up amid tight regulatory oversight.
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