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IndiGo Estimates Over Rs 500 Crore Compensation Payout After Massive Flight Cancellations

Source The economics Times

New Delhi: India’s largest airline IndiGo has estimated that it may have to pay compensation exceeding Rs 500 crore following widespread flight cancellations that disrupted travel for thousands of passengers across the country.

The cancellations, which occurred over several days, were triggered by a combination of operational challenges, including aircraft groundings, air traffic constraints, and adverse weather conditions at key airports. The situation led to significant inconvenience for passengers, with many facing delays, last-minute cancellations, and difficulties in rebooking flights.

In a statement, IndiGo said it is actively working to minimise the impact on customers and restore normal operations at the earliest. The airline added that it is providing refunds, alternate travel arrangements, and compensation in line with regulatory requirements set by the Directorate General of Civil Aviation (DGCA).

“While these disruptions have had a material financial impact, our priority remains passenger safety and customer care,” an IndiGo spokesperson said. The airline acknowledged that the estimated compensation payout of over Rs 500 crore would weigh on its near-term financial performance.

Aviation experts said the episode highlights the mounting pressures faced by airlines amid rapid growth in passenger traffic, aircraft availability issues, and infrastructure constraints at major airports. IndiGo, which operates the largest domestic fleet in India, has also been grappling with the grounding of several aircraft due to engine-related inspections and maintenance.

The DGCA has sought detailed explanations from IndiGo regarding the cancellations and the measures taken to assist affected passengers. The regulator is also monitoring the airline’s compliance with passenger rights and compensation norms.

Despite the setback, IndiGo reiterated its confidence in long-term demand for air travel in India and said it continues to invest in fleet expansion, operational resilience, and customer service to prevent similar disruptions in the future.

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