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Govt Orders IndiGo To Clear Refunds by Sunday, Imposes Emergency Fare Caps as Airfares Cross Rs1 Lakh
Moneylife Digital Team 06 December 2025
Consumer Interest
The Indian government on Saturday ordered IndiGo to complete all pending passenger refunds by 8pm on Sunday, as the nationwide flight disruption triggered by the airline entered its fifth straight day, leaving thousands stranded across major airports. Separately, in a major relief for air travellers, the government imposed emergency fare caps after ticket prices on key routes — including Delhi–Mumbai at Rs60,000 and Chennai–Delhi at Rs69,000 — surged to over Rs1 lakh following IndiGo’s mass cancellations.
 
 
The Union ministry of civil aviation (MoCA) says any delay or non-compliance would attract immediate regulatory action, signalling its toughest stance yet since the crisis began earlier this week. 
 
 
IndiGo, which cancelled more than 1,000 flights on Friday and an additional 405 domestic flights on Saturday, has been directed to process automatic refunds for all cancelled or disrupted services, waive rescheduling fees, and proactively contact affected passengers through newly established support and refund facilitation cells. 
 
The Ministry also ordered the airline to ensure that all baggage left behind or separated from travellers is traced and delivered to their homes within 48 hours, with airlines required to maintain clear communication on tracking, delivery and compensation where applicable.
 
The government simultaneously moved to curb surging airfares after prices skyrocketed on major routes in the wake of IndiGo’s cancellations. Delhi–Mumbai fares hit Rs60,000, Chennai–Delhi touched Rs69,000, and several one-stop routes crossed the Rs1 lakh mark on Friday. 
 
Calling such spikes 'opportunistic pricing', the Ministry invoked its regulatory powers and imposed mandatory fare caps across affected routes. These caps will remain in effect until operations stabilise.
 
“The Ministry will continue to monitor fare levels in real time. Any deviation from the prescribed norms will invite immediate corrective action in the public interest,” the statement says, adding that price discipline was essential to protect senior citizens, students, medical travellers and those in urgent need of mobility.
 
The worsening disruptions have intensified scrutiny of the government’s decision to hold in abeyance certain provisions of the revised flight duty time limitations (FDTL) norms—rules aimed at reducing pilot fatigue. The suspension followed representations from airlines facing severe crew shortages. 
 
However, Airline Pilots' Association of India (ALPA India) condemned the rollback, saying it violated court-mandated safety standards and placed both pilots and passengers at risk. “Keeping the FDTL in abeyance undermines judicial authority and delays essential fatigue protections,” ALPA says in a sharply worded statement.
 
 
IndiGo, on its part, issued a public apology on X, promising 'no questions asked' automatic refunds and a full waiver on all cancellations or rescheduling for travel between 5th December and 15 December 2025. The airline says it is working to stabilise operations and has acknowledged facing crew planning challenges related to the new FDTL rules, along with seasonal weather constraints.
 
 
Meanwhile, Indian Railways has deployed additional coaches on select routes to absorb the surge in stranded passengers. The aviation ministry says it remains in continuous coordination with airports, security agencies and operational stakeholders to restore normalcy at the earliest and ensure full protection of passenger rights.
 
With flight disruptions spreading across the country and refunds now under a strict deadline, the next 48 hours will be crucial for India’s largest airline — and for thousands still waiting to get back home.
 
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