IndiGo Airlines Faces ₹20 Lakh Penalty amid Regulatory Scrutiny

InterGlobe Aviation Limited, the parent company of the prominent carrier IndiGo Airlines, has announced that the Directorate General of Civil Aviation (DGCA) has levied a ₹20 lakh penalty on the airline. According to a regulatory filing with both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), the penalty is linked to the alleged failure in utilizing qualified simulators for pilot training at Category C aerodromes.

The DGCA's communication arrived on September 26, 2025, and IndiGo is currently contesting this ruling before the relevant appellate authority. The airline asserted that this penalty will not significantly impact its financial performance or operational activities. IndiGo also addressed delays in the disclosure, citing internal communication issues as the cause.

While this regulatory challenge surfaces, the broader domestic aviation sector in India continues to grow, albeit with some fluctuations. From January to August 2025, airlines transported 1107.26 lakh passengers, reflecting a 4.99% increase year-on-year. However, August saw a slight traffic decline by 1.40% month-over-month. IndiGo, despite a marginal dip, held a 64.2% market share in August, illustrating its dominance in the industry.

(With inputs from agencies.)