IndiGo announced an allowance increase for pilots effective Wednesday, January 1, 2026, weeks after mass flight cancellations disrupted travel. The changes address pilot concerns amid regulatory scrutiny over roster planning failures that led to chaos at airports across India.
The IndiGo pilot allowances revision highlights challenges in South Asia’s aviation sector, where workforce retention affects connectivity. As the region’s largest carrier, IndiGo’s stability influences cross-border flights to countries like Bangladesh and Nepal, impacting tourism and business travel.
Allowance Increase Details for IndiGo Pilots
IndiGo raised layover allowances for domestic halts of 10 to 24 hours to INR 3000 from INR 2000 for captains and to INR 1500 from INR 1000 for first officers. For layovers beyond 24 hours, the hourly rate rose to INR 150 from INR 100 for captains and INR 75 from INR 50 for first officers.
Deadhead allowances, paid when pilots travel as passengers to duty points, increased to INR 4000 from INR 3000 for captains and INR 2000 from INR 1500 for first officers per scheduled block hour.
Night allowances for duties between 00:00 and 06:00 IST now stand at INR 2000 per hour for captains and INR 1000 for first officers, up from a multiplier-based system.
New tailswap allowances of INR 1500 for captains and INR 750 for first officers apply per aircraft switch during duty, excluding deadhead scenarios.
Domestic transit allowances shifted to INR 1000 per hour for captains and INR 500 for first officers after 90-minute halts, replacing a INR 500 meal allowance for over two hours.
The allowance increase was outlined in an internal email from Ashim Mittra, senior vice president for flight operations, seen by media outlets.
Mass Flight Cancellations Trigger Pilot Morale Boost
The revisions follow mass flight cancellations in early December 2025, when IndiGo grounded over 4500 flights, stranding hundreds of thousands of passengers. On 5 December alone, 1600 flights were affected.
The disruptions stemmed from new Flight Duty Time Limitation rules, which extended weekly rest to 48 hours, redefined night duty to 00:00-06:00 IST, capped night landings at two per week, and limited consecutive night duties to two.
IndiGo’s high-utilisation model clashed with these norms, leading to poor roster planning. Executives visited bases to discuss issues with pilots, culminating in the pilot morale boost through allowance increase.
A Directorate General of Civil Aviation panel probed the cancellations and submitted its report on 26 December 2025. The report remains confidential, but an action taken report is expected within 10 days.
Moody’s Ratings noted potential financial impacts from revenue losses, refunds, and penalties. IndiGo faces a competition probe and regulatory orders to cut 10% of flights for the winter season.
Background on IndiGo Pilot Allowances and Aviation Rules
IndiGo employs about 5000 pilots and commands 65% of India’s domestic market. The airline has expanded rapidly, but pilot poaching by foreign carriers offering better pay has strained retention.
In August 2025, India’s government urged a global code on pilot hiring to curb losses. The allowance increase aims to counter this amid competitive pressures.
New FDTL rules, effective from November 2025, prioritise safety by reducing fatigue. However, temporary relaxations on night duties were granted to stabilise operations, drawing criticism from unions.
IndiGo expects to carry over 123 million passengers in 2025, up from 113 million the prior year, despite the setbacks.
Impact on South Asian Travel
The mass flight cancellations disrupted regional routes, affecting passengers from South Asia. IndiGo’s services to Dhaka, Kathmandu, and Colombo saw delays, highlighting vulnerabilities in shared aviation infrastructure.
The pilot morale boost via allowance increase could improve reliability, benefiting economic ties. Stable operations support remittances and trade in the region.
Analysts note that unresolved roster issues risk further disruptions, but the changes signal proactive steps.
What’s Next for IndiGo Pilot Allowances
IndiGo plans international expansion while cooperating with probes. Monitoring pilot feedback on the allowance increase will gauge its effectiveness in sustaining morale.
This IndiGo pilot allowances adjustment may set precedents for other carriers facing similar challenges.
Published in SouthAsianDesk, January 2nd, 2026
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