WIDE LENS REPORT

IndiGo Refunds $73 Million as India’s Aviation Ministry Sets Deadline Amid Chaos

07 Dec, 2025
1 min read

NEW DELHI, — IndiGo, India’s largest airline, said Sunday it had refunded passengers about $73 million after nearly a week of crippling flight cancellations and delays that snarled travel across the country. The Civil Aviation Ministry had directed the carrier to complete all refunds for cancelled or severely delayed flights by 8 p.m. tonight, Dec. 7, a deadline IndiGo says it has met.

The airline also returned roughly 3,000 pieces of baggage that had been separated from passengers during the disruption. IndiGo, which normally operates about 2,300 flights daily and controls nearly 65 percent of India’s domestic market, has restored service to 135 of its 138 destinations. By Sunday evening, it was running about 1,650 flights, up from just 706 earlier in the week.

The government imposed temporary caps on airfares to prevent price surges and ordered IndiGo to waive rescheduling and cancellation fees through mid-December. Officials said dedicated support cells were set up to ensure passengers were not left stranded without refunds or rebooking options.

Swift Measures Highlight India’s Growing Strength in Managing Aviation Challenges

The crisis began earlier this month when widespread cancellations triggered chaos at major airports in Delhi, Mumbai, Bengaluru and other hubs. IndiGo’s on-time performance had plunged to 30 percent, though by Sunday it had rebounded to 75 percent. The airline projects full network stabilization by Dec. 10.

The fallout has rippled beyond aviation. Rajasthan’s peak tourism season was hit hard, with hotels and tour operators reporting cancellations during the lucrative Christmas and New Year period. Tourism accounts for nearly 12 percent of the state’s economy, raising concerns about broader economic impact if disruptions persist.

Regulators have launched a high-level probe into the causes of the meltdown, issuing show-cause notices to IndiGo’s chief executive Pieter Elbers and other senior managers.

For now, passengers are seeing gradual relief. Airports reported smoother check-ins and boarding on Sunday, though the government’s 24-hour control room continues to monitor operations closely.

 

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