IndiGo to pay out passenger refunds and credit shells

The budget carrier IndiGo announced it will disburse passenger refunds and credit shells by January 2021. The airline highlighted that it has already processed 90% of the total amount it owed for its customers.

On December 7, 2020, the low-cost airline Indigo has announced that it will refund all customer credit shells, which were created when flights were cancelled due to COVID-19 lockdown since March 2020. 

The credit shells were created against cancelled tickets to be used for a future booking for the same passenger. However, it has led to a passenger confusion and money being stuck in a credit shell.

“As our incoming cash flow dried up, we were unable to immediately process refunds for cancelled flights and had to create credit shells for the refunds that were due to our customers,” IndiGo chief executive officer Ronojoy Dutta quoted by the Economic Times.

Now, after it has revived operations and is seeing domestic air travel increase in India, the airline is hopeful it can rapidly refund credit shell amounts for passengers. “We are pleased to commit that we will disburse the full 100% credit shell payments latest by January 31, 2021,” Dutta assured.