DGCA Confirms IndiGo Has Settled Cancellation Refunds, Offers Additional Travel Vouchers to Affected Passengers

India’s largest airline, IndiGo, has completed the refund process for passengers whose flights were cancelled between December 3 and December 5, according to the Directorate General of Civil Aviation (DGCA). Alongside clearing the refunds, the airline has also rolled out additional passenger support under what it calls a “Gesture of Care” initiative.

The aviation regulator said it has been in continuous communication with IndiGo following widespread operational disruptions during early December, which led to large-scale flight cancellations across the country. These disruptions were linked to internal operational challenges, triggering inconvenience for thousands of travellers and drawing regulatory scrutiny.

Refunds Fully Processed, DGCA Says

In an official statement released on Friday, the DGCA confirmed that IndiGo had informed the regulator that all refunds related to flight cancellations during December 3–5 have been fully processed and credited back to the original mode of payment.

The regulator added that passengers whose flights were cancelled within 24 hours of scheduled departure are also eligible for compensation, as per existing DGCA passenger rights regulations. These rules mandate airlines to provide compensation and facilities in cases of flight cancellations, delays, or denied boarding.

‘Gesture of Care’ Vouchers Announced

As an additional measure to support affected customers, IndiGo has introduced a special assistance plan. Under this initiative, passengers whose flights were cancelled or delayed by more than three hours during the disruption period will receive two travel vouchers worth ₹5,000 each, valid for a period of 12 months.

The DGCA stated that this move is intended to provide some relief to travellers who faced inconvenience during the operational instability.

Passenger Complaints Continue Online

Despite the DGCA’s confirmation, several passengers continue to voice concerns on social media about delays in receiving refunds. Complaints related to cancellations between December 2 and December 9 have been frequently shared on platforms such as X (formerly Twitter).

One passenger wrote that despite submitting details after receiving an email from the airline regarding a ₹5,000 refund per cancelled flight, no amount had been credited even after more than ten days, adding that customer support had been unhelpful.

Another user posted that they were seeking legal advice against the airline, claiming that refunds were still pending despite experiencing severe delays and cancellations.

Government and Regulatory Action

Earlier, on December 9, Union Civil Aviation Minister K. Rammohan Naidu informed Parliament that IndiGo had been instructed to issue refunds without delay and that over ₹750 crore had already been transferred to passengers.

In response to the large-scale disruption, the DGCA imposed certain operational restrictions on IndiGo, including temporary flight cuts. The regulator also asked some internal inspectors overseeing the airline to step away, stationed DGCA officials at IndiGo’s headquarters, and issued show-cause notices.

To ensure minimal impact on passengers, other domestic carriers such as Air India, Akasa Air, and SpiceJet were directed to deploy additional aircraft and services to compensate for IndiGo’s reduced schedule.

Inquiry Panel and Ongoing Review

The aviation watchdog also constituted a four-member inquiry committee, led by Joint Director General Sanjay K. Brahmane, to conduct a detailed assessment of the circumstances that caused the disruptions. The panel submitted its findings to the DGCA on December 27.

Speaking in Parliament earlier, the Civil Aviation Minister had stated that the government was treating the issue with utmost seriousness and that strict action would be taken to prevent similar incidents in the future.

Later, on December 30, the minister confirmed that the report had been submitted to the ministry and was under review, with further inputs being sought from the DGCA before final action is decided.

Impact on IndiGo’s Business

The December disruptions also had financial repercussions for IndiGo. The airline’s stock came under pressure following the incident, ending last year nearly 20% lower and erasing an estimated $5 billion in market value. The impact is expected to reflect in the airline’s upcoming third-quarter financial results.