DGCA Cracks Down on IndiGo After Mass Flight Cancellations

Regulator orders removal of senior VP, imposes Rs 22.2 crore fine over operational lapses

January 22, 2026: Following IndiGo’s major operational crisis in December 2025 that led to the cancellation of thousands of flights, the Directorate General of Civil Aviation (DGCA) has taken strict action against the airline. The regulator directed IndiGo to remove its senior vice president and imposed a penalty of Rs 22.2 crore after an inquiry found serious shortcomings in its operational management and preparedness.

The DGCA told the Delhi High Court that the cancellations were triggered by excessive operational optimisation, lack of regulatory readiness, gaps in software support systems, and weaknesses in the airline’s management structure. Based on the findings of a four-member committee, warnings were issued to six senior executives, including Chief Operating Officer Isidre Porqueras Orea. The regulator has also asked IndiGo to submit Rs 50 crore in bank guarantees, refundable upon implementation of corrective operational measures. These submissions were made in response to a PIL seeking a judicial probe and compensation for affected passengers, with the next hearing scheduled for February 25.

Meanwhile, the crisis has had a significant financial impact on the airline. IndiGo reported a 75 per cent drop in quarterly profit after absorbing losses of Rs 5.77 billion due to cancellations. Parent company InterGlobe Aviation posted a profit of Rs 6.13 billion for the December quarter, sharply lower than last year, even as revenue rose 6.2 per cent. The airline cited one-time disruption costs and expenses linked to new labour codes, but said it expects capacity to grow by around 10 per cent in the coming quarter.