IndiGo Faces Rs 2,000 Crore Hit from December Flight Disruptions

• IndiGo is estimated to incur losses exceeding Rs 2,000 crore due to widespread operational disruptions in early December, impacting India's passenger flight network.
• The losses include significant expenses like ticket refunds, regulatory compensation, and 'Gesture of Care' vouchers worth Rs 10,000 each for passengers affected by delays/cancellations between December 3-5.
• The 'Gesture of Care' program alone is estimated to cost Rs 500-1000 crore, in addition to over 300,000 passengers receiving up to Rs 10,000 under Civil Aviation Requirements (CAR) rules.
• Research analyst Shobhit Singhal estimates a loss of approximately Rs 1,913 crore for IndiGo, factoring in revenue loss from reduced operations, cancellations, increased employee expenses, compensation, and DGCA penalties.
• Over 2,500 flights were canceled in the first week of disruptions, leading to Rs 827 crore in customer refunds and arrangements for over 9,500 hotel rooms and 10,000 cabs/buses for affected passengers.

Why It Matters: IndiGo faces a substantial financial hit of over Rs 2,000 crore from December flight disruptions.