Airlines in India have paid a total compensation of ₹50 crore to passengers over delays, cancellations, and denied boarding in the first 10 months of 2024, reflecting a 47% rise compared to the same period in 2023.
Out of the ₹50 crore, the compensation was distributed as follows:
- ₹12.7 crore for denied boarding.
- Nearly ₹10 crore for flight cancellations
- ₹27 crore due to delays beyond two hours
Air India Dominates Compensation Payouts
A significant portion of the total compensation was covered by Air India, which accounted for more than half the payout.
IndiGo’s Minimal Compensation
Despite being the largest domestic carrier, IndiGo paid the lowest amount in compensation, totalling just ₹37 lakh. This can be attributed to the airline’s ability to provide alternate flights and issue refunds, minimising the need for compensation claims.
SpiceJet’s Higher Compensation Despite Smaller Fleet
With a smaller fleet and only a 2.4% market share, SpiceJet shelled out over ₹10 crore in compensation between January and October 2024. This highlights the airline’s struggle with delays and cancellations despite its smaller operations compared to other major carriers.
Denied Boarding: Air India and Vistara Lead
When it comes to denied boarding, Air India paid the most, ₹10 crore, followed by Vistara with ₹1.82 crore.
Cancellations: Air India and SpiceJet at the Top
Air India led with ₹5 crore in compensation for flight cancellations, while SpiceJet followed with ₹2.7 crore. Despite having a smaller fleet, SpiceJet’s compensation for cancellations is significant, reflecting the challenges the airline faced with operational disruptions.
Delays Beyond 2 Hours: Air India and SpiceJet Top the List
The largest share of compensation was allocated to delays beyond two hours, with Air India again topping the list, paying out ₹10 crore. SpiceJet, which had longer delays, paid ₹7.4 crore for such instances.
Airline Punctuality in October 2024
When it comes to punctuality, none of the major airlines performed above 80% in October 2024. The on-time performance (OTP) figures for October were as follows:
| Airline | Punctuality rate |
| IndiGo | 71.9% |
| Vistara | 71.4% |
| Akasa Air | 67.2% |
| Air India | 66.3% |
| SpiceJet | 63.8% |
Despite the rise in compensation payouts, the lower on-time performance rates highlight the ongoing challenges faced by Indian airlines in terms of operational efficiency and passenger satisfaction.
The significant rise in compensation payouts in 2024 underscores the continued disruptions in the aviation sector, particularly in delays, cancellations, and denied boarding.
Also read: Parliament passes Bharatiya Vayuyan Vidheyak 2024, replacing 90-year-old Aircraft Act
