India’s largest airline, IndiGo, has estimated a payout of more than 5 billion rupees ($55.19 million) to passengers affected by large-scale flight cancellations that disrupted travel across the country last week.
The announcement comes amid mounting criticism over operational lapses that led to thousands of cancelled flights, leaving tens of thousands of passengers stranded at airports during peak travel days.
IndiGo had cancelled around 4,500 flights last week, primarily due to poor pilot roster planning. The disruption occurred as new pilot rest periods and duty-time regulations came into effect, significantly impacting flight operations.
As a result of the widespread cancellations, the civil aviation regulator directed IndiGo to cut 10% of its domestic winter schedule, further tightening capacity across its network.
In a post on X, the airline said it is currently in the process of identifying flights where customers were severely impacted and stranded at airports on December 3, 4 and 5.
IndiGo clarified that compensation will be provided to:
Customers whose flights were “cancelled within 24 hours of departure time”
Customers “severely stranded at certain airports”
The airline stated that it is assessing each case to ensure affected passengers are compensated in line with applicable policies and regulatory requirements.
IndiGo has faced widespread criticism from passengers and industry observers for failing to adequately plan for the new pilot rest periods and duty rules. The lack of preparedness resulted in grounded aircraft, cascading delays and major disruptions to travel plans nationwide.
The episode has raised concerns about operational resilience at a time when air travel demand in India remains strong.
Following the regulator-mandated capacity reduction, IndiGo revised its outlook for the third quarter. The airline confirmed that it had cut its capacity and passenger unit revenue forecast in response to the scaled-down winter schedule.
The payout estimate of over ₹5 billion is expected to add further pressure on short-term financial performance, even as the airline works to stabilise operations.
India’s aviation regulator continues to closely monitor airline operations to ensure compliance with safety and crew welfare norms. The IndiGo disruption highlights the broader challenges airlines face in balancing rapid network expansion with evolving regulatory frameworks.