IndiGo shares rise 4% despite DGCA slapping ₹22 crore penalty; CEO Elbers warned

This comes despite the airline regulator, DGCA, passing eight orders based on the findings of the Inquiry Committee, which was constituted to review the operational disruptions.

The stock was trading 3.88% higher at ₹4,924 per equity share at around 11:15 am.

The Director General of Civil Aviation’s (DGCA) orders include slapping penalties totalling ₹22.20 crore for the massive flight disruptions in December. The penalty comprises one-time systemic penalties of ₹1.80 crore for non-compliances under applicable Civil Aviation Requirements (CARs) and a penalty for continued non-compliance with revised FDTL CAR for 68 days (from December 5, 2025, to February 10, 2026), amounting to ₹20.40 crore. The ₹20.40 crore penalty translates to a ₹30 lakh fine for each day during the period.

It also directed the airline to furnish a ₹50-crore bank guarantee to ensure long-term systemic corrections, IndiGo said in a regulatory filing on January 18.

Furthermore, it cautioned CEO Pieter Elbers for inadequate overall oversight of flight operations.

It also issued a warning notice to the Accountable Manager (Chief Operating Officer – COO), for failure to adequately assess the impact of the Winter Schedule 2025 and the revised FDTL provisions, which led to widespread operational disruptions.

Additionally, it issued a warning to the Senior Vice President – Operations Control Centre (OCC), along with directions to the company to relieve him of his current operational responsibilities and not assign any accountable position.

The DGCA issued warnings to the Deputy Head – Flight Operations, AVP – Crew Resource Planning, and Director – Flight Operations for operational, supervisory, and roster-management related lapses, it added.

“From an operational standpoint, DGCA has noted that the company restored normal operations within a short period following the December 2025 disruptions,” IndiGo said.

Other than the ₹22.20 crore penalty, the airlines noted that there was no additional material impact.

The company added that it is in the process of reviewing the DGCA orders it received on Saturday and will take necessary actions as may be required.

Announcing the enforcement actions after the detailed probe, DGCA cited over-optimisation of operations, inadequate regulatory preparedness, along with deficiencies in system software support as among the primary reasons for the disruptions.

Between December 3 and 5, the DGCA said, 2,507 flights were cancelled, and 1,852 flights were delayed, impacting over 3 lakh passengers at airports across the country.