The operational crisis at IndiGo has started hitting Delhi’s economy hard, with the Chamber of Trade and Industry (CTI) estimating losses of nearly ₹1,000 crore across trade, tourism, hospitality and exhibition sectors. Daily flight cancellations have sharply reduced the movement of traders, tourists and business travellers, disrupting business activity at a crucial time.
CTI Chairman Brijesh Goyal said Delhi’s market footfall has dropped 25% in 10 days, with thousands of outstation visitors cancelling travel plans. Delhi airport typically handles 1.5 lakh passengers daily, including around 50,000 traders and business travellers. But repeated cancellations have drastically reduced this flow, leading to losses in wholesale and retail markets.
Hotels, restaurants, banquets and resorts have seen thousands of cancellations, while major trade exhibitions at Pragati Maidan and Anand Mandapam—covering auto components, textiles, handlooms, home furnishing and automobiles—have suffered as exhibitors and buyers failed to reach the city.
Travel operators warn that the disruptions are now spilling into the peak tourism window of December–January. Christmas, New Year bookings and destination weddings have already been hit, causing cascading losses across hospitality and event-related sectors.
The crisis deepened after the DGCA ordered IndiGo to cut 10% of its flights, following persistent operational issues. The Ministry of Civil Aviation has begun reallocating this curtailed capacity to other airlines, including Air India, Akasa Air and SpiceJet. Officials say the redistribution aims to restore passenger confidence and signal that operational lapses will have market consequences.
The transition will be rolled out in phases to avoid fresh cancellations due to capacity strain. IndiGo will continue flying all routes, but high-frequency sectors may see reduced operations.
Trade bodies warn that if the situation is not stabilised soon, financial losses could rise sharply during the ongoing festive and tourism season.
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