After IndiGo underwent an operational crisis in December 2025, which led to the cancellation of thousands of flights, the Directorate General of Civil Aviation (DGCA) ordered the airline to not only remove its senior vice president but also imposed a penalty of Rs 22.2 crore.
Remove Senior VP, Pay Rs 22.2 Cr Fine
The aviation regulator told the Delhi HC that it conducted an inquiry into the cancellations and found that they were caused by excessive operational optimisation, inadequate regulatory readiness, gaps in system software support, and weaknesses in the airline’s management structure. Based on these findings by a four-member committee, the regulator imposed a penalty of Rs 22.2 crore on IndiGo.
The government’s law officer added that warnings had been issued to six senior executives, including Chief Operating Officer (COO) Isidre Porqueras Orea, the deputy head of flight operations, and a resource analyst. The DGCA also ordered that the airline’s senior vice president be removed.
The regulator has further instructed IndiGo to deposit Rs 50 crore in the form of bank guarantees, which will be refunded once it implements the required corrective measures in its operations.
These submissions were made in response to a public interest litigation (PIL) seeking a judicial inquiry into the large-scale flight cancellations, as well as compensation and support for affected passengers. The Delhi High Court is scheduled to hear the matter next on February 25.
IndiGo Profit Slumps 75%
IndiGo reported a sharp decline in its quarterly performance on Thursday, with profit plunging 75 per cent after the airline absorbed financial losses linked to flight cancellations. The cancellations cost the airline Rs 5.77 billion.
InterGlobe Aviation, IndiGo’s parent company, reported a profit of Rs 6.13 billion for the quarter ended December 31, compared to Rs 24.42 billion in the same period last year. The airline said it recorded a one-time impact of Rs 14.67 billion during the quarter, including costs related to disruptions and expenses arising from the implementation of new labour codes. Despite these challenges, quarterly revenue rose 6.2 per cent to Rs 234.72 billion, and the carrier said it expects capacity to grow by about 10 per cent in the upcoming quarter, Reuters reported.
