IndiGo to Start ₹10,000 Compensation Payouts from December 26 After Mass Flight Cancellations

IndiGo will start compensating passengers affected by large-scale flight cancellations earlier this month from next week, after instructions from the civil aviation ministry. The move follows a high-level review chaired by Aviation Secretary Samir Sinha, where the airline was asked to speed up payouts to all eligible passengers.

₹10,000 Vouchers for Severely Affected Flyers

The airline will issue travel vouchers worth ₹10,000 from December 26 to passengers who were badly impacted and stranded at airports for long hours on December 3, 4 and 5. This voucher is in addition to the mandatory compensation of ₹5,000 to ₹10,000 under existing government rules.

Who Will Get Paid First

Passengers who booked tickets directly through IndiGo’s website will receive compensation first, as the airline already has their details. For passengers who booked through travel agents or online travel agencies (OTAs), IndiGo has been directed to collect passenger information and ensure payments are made directly to customers.

DGCA and Air Seva to Track Complaints

The Directorate General of Civil Aviation (DGCA) will oversee the compensation process to make sure no eligible passenger is left out. The civil aviation ministry will also monitor complaints and delays through its Air Seva grievance redressal portal.

Refund Delays for OTA Bookings

Although IndiGo has started refunds for cancelled flights, many passengers who booked through OTAs are still waiting for their money. Some customers have reported delays due to coordination issues between airlines, booking platforms and banks. IndiGo has said it issued full refunds without deductions and that OTAs are responsible for passing the money to passengers.

OTAs Begin Refunds

Major online travel platforms such as MakeMyTrip have already started issuing refunds, even before receiving payments from IndiGo. According to reports, MakeMyTrip has processed refunds worth nearly ₹10 crore so far. Last week, the DGCA instructed all OTAs to provide full refunds without any deductions.

Scale of Cancellations and Compensation

Between December 1 and 9, IndiGo cancelled 4,354 flights. Of these, 2,507 flights were cancelled on December 3, 4 and 5 alone. With an average of 150 passengers per flight, over 3.8 lakh passengers could be eligible for vouchers. The total compensation may cross ₹376 crore, excluding payouts for delayed flights.

Indigo Share Price Movement

InterGlobe Aviation share price (IndiGo) closed nearly flat at ₹5,113 on December 19, down ₹2.50 or 0.05%, after trading between a low of ₹5,103.50 and a high of ₹5,166.50 during the session. The stock opened at ₹5,158 and currently commands a market capitalisation of about ₹1.99 lakh crore, with a P/E ratio of 38.73. IndiGo’s shares are trading below their 52-week high of ₹6,232.50 and above the 52-week low of ₹3,945, while the airline offers a dividend yield of 0.20%, translating to a quarterly dividend of ₹2.56 per share.

Conclusion

The government’s intervention has pushed IndiGo to speed up passenger compensation after widespread disruptions. While direct-booking customers are likely to be paid first, timely coordination with OTAs will be key to ensuring all affected passengers receive their dues without further delays.

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