InterGlobe Aviation shares fall over 3.5% as CCI orders detailed probe for unfair business practices

The CCI on Wednesday ordered a detailed probe against IndiGo for unfair business practices, nearly two months after the country's largest airline cancelled thousands of flights due to operational issues, causing hardships to passengers.

After considering the data related to airlines and those provided by the aviation regulator DGCA, the Competition Commission of India (CCI) has prima facie concluded that IndiGo has abused its dominant position.

In a 16-page order, CCI said that by cancelling thousands of flights, which constituted a significant portion of the scheduled capacity, IndiGo effectively withheld its services from the market, creating an artificial scarcity and limiting consumer access to air travel during peak demand.

"Such conduct by a dominant enterprise may be viewed as restricting the provision of services under Section 4 (2) (b)(i) of the Act," the regulator said.

Section 4 of the Competition Act pertains to abuse of dominant position.

Noting that prima facie the airline's conduct seems to be causing an appreciable adverse effect on competition in India, CCI ordered a detailed investigation by its Director General (DG).

IndiGo Q3 FY26 Results

India's largest airline, IndiGo, reported a 78% decline in the December quarter (Q3 FY26) net profit at ₹549.1 crore as flight disruptions and implementation of the new labour code took a toll on its earnings.

The airline reported a net profit of ₹549.1 crore in the October-December quarter, compared with ₹2,448.8 crore earnings in the year-ago period, according to a company statement.

The company said it took a hit of ₹1,546.5 crore in the third quarter.

This included ₹577.2 crore due to massive flight disruptions witnessed during early December and another ₹969.3 crore on account of the implementation of new labour laws.

IndiGo was slapped with a fine of ₹22.2 crore for the flight disruptions, which it has accounted for in exceptional items.

Currency movement related to dollar-based future obligations aggregated to ₹1,035 crore in the December quarter.

In the third quarter of the current financial year, InterGlobe Aviation, the parent of IndiGo, recorded a total income of ₹24,540.6 crore, higher than the ₹22,992.8 crore posted in the year-ago period.

IndiGo CEO Pieter Elbers said in the December quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from December 3 to 5.