IndiGo chaos forces Indian government to cap price-gauging by other airlines

Government says airline has until end of this weekend to refund all customers affected by flight cancellations

Passengers gather at the Indigo reservation counter inside Terminal 1 of Indira Gandhi International Airport in Delhi (Getty Images)

India's aviation ministry capped airfares on Saturday as flight cancellations by the country’s largest carrier IndiGo left customers scrambling to make other arrangements.

Large volumes of passengers were seen gathered at several of India's biggest airports after a fifth day in which IndiGo was forced to scrap hundreds flights.

IndiGo has cancelled thousands of flights this week, sparking travel chaos across the country. The budget airline has blamed the cancellations on a mixture of factors, but the primary issue appears to be a shortage of pilots after new rules were enforced limiting their work hours.

The government has since responded by announcing special relief for the carrier from the new rules, as well as putting on extra trains to help provide passengers with alternative travel arrangements.

Delhi’s Indira Gandhi International Airport posted on X on Saturday that flight operations were steadily resuming, but the airline still cancelled 385 flights nationwide, affecting passengers mostly at Mumbai and Bengaluru airports.

IndiGo’s wave of cancellations triggered a sharp spike in airfares on key routes, with economy-class tickets between New Delhi and Mumbai averaging around Rs 20,000 (£166) on Saturday – fares are typically closer to around Rs 6,000.

Passengers rest outside of Terminal 1 of Indira Gandhi International Airport after mass cancellation of Indigo flights on December 05, 2025 in New Delhi, India. (Getty Images)

The aviation ministry said it was capping fares to maintain pricing discipline in the market, without sharing details. "The ministry will continue to closely monitor fare levels through real-time data and active coordination with airlines," it said.

The ministry has directed IndiGo to clear all pending passenger refunds by 8pm on Sunday and reschedule flight tickets without additional charges. It added that the airline must deliver all baggage separated from passengers at a chosen address within the next 48 hours.

Indian domestic airlines are not required to provide additional compensation to customers in the case of delayed or cancelled flights.

Analysts say the flight cancellations represent the biggest crisis in the 20-year history of IndiGo, which has risen to first place in India’s booming aviation sector according to market share thanks to a combination of low-cost fares and a good reputation for on-time reliability.

Passengers sit outside of Terminal 1 of Indira Gandhi International Airport after mass cancellation of Indigo flights on December 05, 2025 in New Delhi, India (Getty Images)

IndiGo has admitted it failed to plan properly ahead of the 1 November deadline to implement stricter rules on night flying and weekly rest for pilots, ultimately leading to scheduling problems this week.

None of the country’s other major airlines, including Air India, have faced such issues due to the introduction of the new rules.

The airline said it hoped to return to normal operations between 10-15 December.

Airport sources said that IndiGo cancelled 124 flights in Bengaluru on Saturday, 109 in Mumbai, 86 in New Delhi and 66 in Hyderabad. Satish Konde had to catch a connecting flight from Mumbai to the western city of Nagpur and had checked in, but he was later told it was cancelled. "I am waiting for my luggage to be returned," he told Reuters.