Shares of IndiGo airline rose sharply on January 19, even after the aviation regulator imposed a record INR 22.2 crore fine on the carrier for massive flight disruptions last month. Investors appeared to brush off the penalty, with analysts describing it as “relatively modest” compared to the scale of the airline’s operations.InterGlobe Aviation, the parent company of IndiGo, saw its shares climb as much as 3.8% during intraday trading, touching INR 4,929.50 on the National Stock Exchange. At around 12:20 pm, the stock was trading 3.5% higher at INR 4,907, making it the top gainer on the Nifty index even as broader markets were under pressure. Market reaction: Despite the fine, investors remained positive. Jefferies analysts said the penalty was “modest,” likely due to regulatory limits, and noted that the focus will now shift to how quickly IndiGo can normalise its schedules and implement systemic reforms. The INR 22.2 crore fine is equal to about 0.31% of the airline’s annual profit for the financial year 2025. IndiGo shares had fallen 14.2% in December following the disruptions, marking their steepest monthly decline since October 2024. The Directorate General of Civil Aviation(DGCA) imposed the penalty after a detailed probe into widespread flight cancellations and delays between December 3 and 5. During this period, 2,507 flights were cancelled, and 1,852 flights were delayed, affecting more than three lakh passengers across India. The total fine of INR22.2 crore includesalone-time penalty of INR1.8 crore for violations of Civil Aviation Requirements (CARs)and a daily fine of INR 30 lakh for 68 days of continued non-compliance with revised Flight Duty Time Limitation (FDTL) rules, amounting to INR 20.4 crore. In addition, the DGCA directed IndiGo to furnish an INR50 crore bank guarantee to ensure long-term systemic improvements.