IndiGo crisis: Airline to pay over Rs 500 crore to "severely stranded" passengers

New Delhi: IndiGo said on Friday that it has estimated the compensation payout to exceed Rs 500 crore for passengers whose flights were cancelled within 24 hours of departure, leaving many stranded at airports across the country.

"Our goal is to make this process (of refunds) as transparent, easy, and hassle-free as possible for you. We will be provided compensation which, in our current estimation, will be in excess of Rs 500 crores to customers whose flights were cancelled within 24 hours of departure time and/or to customers severely stranded at certain airports," the airline said in a statement released on X on Friday.

IndiGo said it is "identifying flights where customers were severely impacted and stranded at airports on 3, 4, and 5 December" and will "reach out to all such customers in January so that compensation can be extended smoothly."

"At this stage, our primary focus through December 2025 is ensuring that all refunds for affected customers are processed efficiently, expeditiously, and with the utmost urgency. Most of them have already been completed, and the remaining ones will reflect shortly," it said on X.

IndiGo says daily performance improving

IndiGo said on Saturday that it plans to operate over 2,000 flights across the country, with its daily performance showing improvement since last week.

"Demonstrating continuous operational normalisation and stability since the last four days, IndiGo is set to operate over 2,000 flights today, as per its revised scaled-down schedule. All our 138 operational destinations are connected, and our on-time performance has been consistently normal as per IndiGo standards," the airline said in a statement.

Govt action

Earlier on Tuesday, in a major crackdown on Indigo, the central government ordered the airline to cut its flight operations by 10 per cent.

The winter schedule of IndiGo, the country's largest airline, was further reduced with the government cutting it down by 10%. The decision came hours after the Directorate General of Civil Aviation (DGCA) imposed a 5% cut.

Union Minister of Civil Aviation Ram Mohan Naidu informed in a social media post that the ministry says IndiGo needs to cut down some of its routes so the airline can stabilise its operations and reduce flight cancellations. 

“The Ministry considers it necessary to curtail the overall Indigo routes, which will help in stabilising the airline’s operations and lead to reduced cancellations. A curtailment of 10% has been ordered. While abiding with it, Indigo will continue to cover all its destinations as before,” said Ram Mohan Naidu.

IndiGo refunds

The aviation minister said that IndiGo CEO Pieter Elbers was summoned to come up with an update and that he has confirmed that 100% of refunds for passengers affected till December 6, 2025 have been completed.

“Today again, @IndiGo6E CEO Pieter Elbers was summoned to the Ministry to provide an update. He confirmed that 100% of the refunds for flights affected till 6th December have been completed. A strict instruction to expedite the completion of the remaining refunds and baggage handover was given,” the aviation minister said on Tuesday.