IndiGo crisis hits Delhi's economy hard: Rs 1,000-crore loss expected as flight cancellations disrupt trade and tourism
PTC Web Desk: Delhi’s economy is facing a major setback as IndiGo’s ongoing operational crisis continues to disrupt flight schedules across the country. According to the Chamber of Trade and Industry (CTI), large-scale flight cancellations by the airline have already caused an estimated loss of nearly Rs 1,000 crore to the Capital’s trade, tourism, hospitality and exhibition sectors.
CTI Chairman Brijesh Goyal said daily cancellations have severely affected the movement of traders, tourists and business travellers, leading to a noticeable dip in commercial activity across Delhi. He noted that footfall in city markets has fallen by almost 25% in the last 10 days, as outstation travellers are choosing to avoid air travel amid uncertainty.
Delhi Airport usually handles around 1.5 lakh passengers every day, including nearly 50,000 traders and business travellers. However, the repeated flight disruptions have significantly reduced this inflow, resulting in direct losses for wholesale markets, retail centres, and business districts. Hotels, restaurants, banquets and resorts have reportedly received thousands of cancellations in the past week alone.
The exhibition and events industry has also been hit hard. Several major exhibitions, spanning automobiles, handloom, textiles, home decor and auto components, are currently being held at Pragati Maidan and Anand Mandapam. Many traders and visitors from across India were unable to reach Delhi due to last-minute flight cancellations, affecting business participation and sales.
Travel industry representatives warn that the crisis is now spilling into the peak tourism season. Destination weddings, too, are facing disruption, with some wedding groups unable to reach venues, triggering losses for hotels, caterers, event planners and transport operators.
The situation worsened after the Directorate General of Civil Aviation (DGCA) ordered IndiGo to reduce its operations by 10% due to continued disruptions. In response, the Ministry of Civil Aviation has begun the process of redistributing this curtailed capacity among other domestic airlines.
Government officials said the redistribution aims to restore passenger confidence and prevent further cancellations. The move is also intended to signal that operational failures will directly affect an airline’s market share.
Under the proposal, IndiGo’s reduced flight share will be allocated to carriers such as Air India, Akasa Air and SpiceJet. Distribution will be based on fleet size, operational readiness, and ability to manage additional passengers. The rollout will be staggered to maintain stability and avoid further disruptions.
While IndiGo will continue to operate on all its existing routes, the impact will be felt more on high-demand and high-frequency sectors.
With the festive and tourism season underway, trader groups fear that losses may rise further if the aviation situation does not stabilise soon. For now, Delhi’s markets, hotels, event venues and tourism operators remain anxious, caught between an unstable flight network and a crucial business season that is slipping away.
- With inputs from agencies
