Mumbai:
The penalty of Rs 944.20 crore imposed by the Income Tax Department has been denied by the country’s big airline IndiGo and said that it will legally challenge this order. The airline’s parent company Interglobe Aviation received a penalty notice from the Income Tax Department on Saturday. In the regulatory filing on Sunday, the company said that this penalty was for the assessment year 2021-22.
The company believes that this order is not in line with the law. At the same time, IndiGo denied this order wrong. IndiGo has assured that it will adopt legal measures against penalty. Despite the large penalty, IndiGo has clarified that this order will have no effect on its financial, operations or overall business activities.
This penalty has been set up at a time when IndiGo is already struggling with financial challenges. In the third quarter of FY 2025, IndiGo’s net profit has fallen by 18.6 percent. During this period, the income of the airline was reduced from Rs 2,998.1 crore to Rs 2,448.8 crore.
Apart from this, the company’s operational cost in the October-December quarter has increased by 20 percent to Rs 20,466 crore, which has seen the impact on the company’s profits. According to DGCA’s monthly passenger traffic report, IndiGo remains the largest airline in the country with 63.7 percent market share. In February 2025, 89.40 lakh passengers flew in this budget airline.
The Air India Group was ranked after IndiGo, including the Air India Express. In February, 38.30 lakh passengers flew in the Tata Group airline, causing the airline’s market share to 27.3 percent. 6.59 lakh passengers flew in Akasa Air and the airline’s market share was 4.7 percent. In SpiceJet, 4.54 lakh passengers traveled by air and the airline’s market share was 3.2 percent.