India’s largest airline, IndiGo, is in the process of finalising compensation payouts for passengers affected by widespread flight cancellations and operational disruptions. The developments were shared in the Delhi High Court, where the Directorate General of Civil Aviation (DGCA) and the airline’s counsel appeared before a bench headed by Chief Justice D.K. Upadhyaya and Justice Tejas Karia.
During the proceedings, IndiGo’s lawyer informed the court that refunds for all cancelled tickets have already been fully processed. The airline has also started issuing “Gesture of Care” travel vouchers worth ₹10,000 to affected passengers, which are valid for 12 months and can be redeemed on future IndiGo flights.
However, the court was told that compensation beyond refunds and vouchers is still being worked out. IndiGo is expected to file an affidavit within two weeks, outlining the timeline and mechanism for completing the additional payouts.
The hearing also highlighted regulatory action taken by the DGCA following an investigation into the disruptions. A committee found that the crisis stemmed from over-optimisation of operations, inadequate preparedness for revised duty and rest norms, software support issues, and management lapses. Based on these findings, the regulator imposed a penalty of ₹22.2 crore on the airline and issued warnings to senior officials.
IndiGo was further directed to deposit a ₹50 crore bank guarantee with the DGCA. The amount will serve as an assurance for operational improvements and will be released in phases once compliance is verified.
The matter is scheduled to be heard next on February 25, when the court will review the airline’s affidavit on the compensation plan.
