IndiGo Share Price Slides 2% in Stock Market Today After DGCA Tightens Ticket Refund Rules

The IndiGo share price came under pressure in the stock market today, falling more than 2% on February 27. The decline followed a fresh regulatory update from India’s aviation watchdog on airline ticket refund rules.

The reaction was swift. Investors adjusted positions as the market digested the new compliance framework for airlines.

Here’s the full picture.

Market Performance: IndiGo Among Top Nifty Losers

In afternoon trade on February 27:

• IndiGo share price dropped 2.1%
• The stock was trading at ₹4,830 per share
• It featured among the key losers in the Nifty pack

The weakness wasn’t limited to one counter.

Other travel-related stocks also saw mild declines:

• Thomas Cook slipped 1.7%
• Easy Trip Planners declined 0.35%
• Ixigo traded slightly lower

The stock market today clearly reflected caution across aviation and travel-linked names.

What Triggered the Fall in IndiGo Share Price?

The key development came from the Directorate General of Civil Aviation (DGCA).

On February 24, the regulator issued revised Civil Aviation Requirements (CAR) concerning ticket refunds for passengers of public transport undertakings.

These updated norms will take effect from March 26.

The objective is simple: strengthen passenger rights and reduce refund-related grievances.

But any regulatory change in a high-volume business like aviation tends to impact sentiment — and that was visible in the IndiGo share price in the stock market today.

New 48-Hour Cancellation Window Introduced

The standout feature of the revised framework is a 48-hour “Look-In” option.

Under this rule:

• Passengers can cancel or modify tickets within 48 hours of booking
• Airlines cannot charge additional cancellation fees in that period
• Only the difference in fare for a revised flight, if applicable, can be collected

However, the benefit applies only under specific conditions:

• Not valid if a domestic flight departs within 7 days of booking
• Not valid if an international flight departs within 15 days of booking
• Applies only when tickets are booked directly through the airline’s official website

After the 48-hour window, standard cancellation charges will apply.

For airlines handling large volumes daily, operational execution becomes crucial.

No Extra Fee for Name Corrections Within 24 Hours

Another change addresses minor booking mistakes.

If a passenger identifies a name error within 24 hours of booking:

• No extra charge will be levied
• The correction must relate to the same individual
• The booking must be made directly through the airline’s website

This adjustment simplifies small but common passenger issues.

Clear Refund Accountability Defined

The regulator has also clarified responsibility in cases where tickets are purchased via travel agents or online portals.

As per the new direction:

• Airlines remain responsible for processing refunds
• Refunds must be completed within 14 working days

The DGCA emphasized that travel agents act as airline representatives, making airlines accountable for refund execution.

This clarity reduces ambiguity in refund disputes.

Revised Medical Emergency Policy

The updated rules also cover medical emergencies.

If:

• A passenger
• Or a family member on the same PNR

Is hospitalised during the travel period:

• Airlines may issue a full refund
• Or offer a credit shell

In other cases, refunds will be processed after medical clearance from:

• The airline’s Aerospace Medicine specialist
• Or a DGCA-approved Aerospace Medicine specialist

The provision adds a structured review process

Background: Rising Passenger Complaints

The update comes amid increasing passenger concerns related to refund delays.

In December 2025:

• Scheduled airlines received 29,212 passenger-related complaints
• 7.5% of them were refund-related
• Domestic carriers transported over 1.43 crore passengers during that month

The refund issue gained further attention during flight disruptions involving IndiGo in December 2025. At that time, the civil aviation ministry had instructed the airline to ensure timely refund completion.

The regulatory tightening now formalizes refund timelines.

India’s Expanding Aviation Market

Despite short-term volatility in the IndiGo share price, India’s aviation sector remains large and growing.

According to official data:

• Domestic airlines carried 16.69 crore passengers in 2025
• India continues to rank among the fastest-growing aviation markets globally

InterGlobe Aviation, the operator of IndiGo, remains a dominant player in the domestic segment.

With scale comes responsibility — and regulatory oversight tends to move in step with growth.

Timeline of the Revised Refund Rules

The process unfolded in stages:

• Draft norms circulated in October 2025 for stakeholder comments
• Final rules issued on February 24
• Implementation from March 26

This structured rollout provided industry participants time to respond before formal enforcement.

Stock Market Today: Why Policy Moves Matter?

The drop in IndiGo share price in the stock market today underscores how quickly regulatory announcements can reshape sector sentiment.

Aviation is a volume-driven business. Even incremental policy changes around cancellations and refunds affect processes, working capital cycles, and passenger handling systems.

The decline of 2.1% to ₹4,830 reflects immediate investor response to compliance adjustments — not long-term projections.

Travel-related stocks showing parallel weakness reinforces that the market assessed the change at a sector level.

Summary: IndiGo Share Price Reaction Explained

Here are the key facts from the stock market today:

• IndiGo share price fell 2.1% to ₹4,830
• Decline followed DGCA’s updated ticket refund norms
• 48-hour free cancellation window introduced (with 7-day and 15-day conditions)
• Refunds must be processed within 14 working days
• Free name correction within 24 hours for direct bookings
• Rules effective from March 26
• December 2025 recorded 29,212 complaints, with 7.5% linked to refunds
• Domestic airlines carried 16.69 crore passengers in 2025

The aviation regulator has tightened the refund framework. The market reacted instantly.

For now, the IndiGo share price movement in the stock market today remains a clear example of how regulatory changes shape short-term trading sentiment in high-volume sectors like aviation.

Source: Moneycontrol