IndiGo Posts 78% Drop in Q3 Profit Amid Flight Disruptions; Senior VP Suspended

India’s largest airline, IndiGo, reported a sharp 78 percent decline in its Q3 profit as operational disruptions and compliance challenges hit the company hard. The airline’s net profit fell to ₹549.1 crore for the December quarter, down from ₹2,448.8 crore in the same period last year.

The parent company, InterGlobe Aviation, saw its total revenue rise to ₹24,540.6 crore, compared with ₹22,992.8 crore in Q3 of the previous fiscal year. Despite higher revenue, widespread flight cancellations at the start of December severely impacted profitability.

Operational Disruptions and DGCA Intervention

In early December, IndiGo faced major operational disruptions, prompting the Directorate General of Civil Aviation (DGCA) to reduce the airline’s winter flight schedule by up to 10 percent until February 10. Between 3rd and 5th December 2025, the airline cancelled 2,507 flights and delayed 1,852 flights, affecting over 300,000 passengers across India.

Refunds and Compensation

The Delhi High Court has asked IndiGo to submit a compliance affidavit regarding refunds and compensation for passengers affected by the cancellations. IndiGo’s legal team informed the court that refunds have been processed and passengers are being offered compensation in accordance with civil aviation rules. For the most severely affected flights, the airline is offering ₹10,000 vouchers and has set up a dedicated website to facilitate compensation claims. The next hearing is scheduled for February 25.

Disciplinary and Regulatory Action

Following the crisis, the airline took swift internal action. A senior vice-president was suspended, and DGCA, along with the Ministry of Civil Aviation, imposed a ₹22 crore fine. Additionally, IndiGo has been asked to provide a ₹50 crore bank guarantee for improved compliance. Senior executives, including the CEO and COO, were formally warned to ensure stricter adherence to regulations.

Outlook

While revenue remains strong, the sharp profit decline highlights the operational risks in the airline industry. Analysts suggest that IndiGo will need robust contingency planning and regulatory compliance to prevent similar disruptions in future quarters.