IndiGo posts Rs 238 crore net loss in three months

IndiGo on Thursday reported a Rs 238 crore net loss for the three months ended June as higher fuel prices and the West Asia conflict resulted in turbulence for the country’s largest airline.

The airline had a profit of Rs 2,176.3 crore in the year-ago period.

In the first quarter of the current fiscal, InterGlobe Aviation saw its total income rise to Rs 25,614.1 crore from Rs 21,542.6 crore a year ago.

However, overall expenses surged during the same period, according to a release.

“A combination of fuel price escalation, adverse foreign exchange movement and the Middle East conflict impacted profitability during the quarter, resulting in a net loss of Rs 2.4 billion,” it said.

The carrier’s net loss excluding foreign exchange amounted to Rs 56 million (Rs 5.6 crore) in the quarter under review, the release said.

InterGlobe Aviation is the parent of IndiGo, which has a domestic market share of over 66 per cent.

Providing a relatively muted forecast for the September quarter, IndiGo said that capacity in terms of Available Seat Kilometres (ASKs) is expected to be broadly flat compared to the year-ago period, reflecting lower aircraft utilisation amid lower demand.

IndiGo Managing Director Rahul Bhatia said the first quarter was shaped by a volatile operating environment, with elevated fuel costs and network-related constraints in West Asia impacting profitability.

“At the same time, demand remained healthy, and our revenue performance improved year-on-year, supported by improved yields and continued customer preference for IndiGo, as we proudly served more than 31 million passengers,” he pointed out.

Bhatia said the pressure of fuel costs and the rupee depreciation resulted in a loss of around `2 billion for the first quarter.

In the June quarter, fuel cost jumped nearly 86 per cent to Rs 10,832.9 crore while the total expenses climbed 34 per cent to Rs 25,852.5 crore during the same period.

The airline’s yield increased to Rs 6.04 per kilometre in the latest June quarter from Rs 4.98 per kilometre recorded in the year-ago period.

RASK or Revenue per Available Seat Kilometre too rose to Rs 5.66 from Rs 4.86.

“In line with lower demand during a traditionally weaker quarter, coupled with the operational uncertainty affecting travel between India and West Asia, capacity in the second quarter of fiscal year 2027, measured in terms of ASKs, is expected to remain broadly flat compared to the second quarter of fiscal year 2026, reflecting lower aircraft utilisation.

“As we move beyond this seasonally weaker quarter, we expect aircraft utilisation to progressively increase,” the airline said.

At the end of June, IndiGo had a fleet of 432 planes.

Bhatia said that while near-term uncertainties remain, the airline continues to stay committed to its long-term priorities of strengthening the network, enhancing customer choice, and creating sustainable value for all stakeholders.

In the June quarter, “IndiGo had a total cash balance of Rs 5,28,846 million comprising Rs 3,90,387 million of free cash and Rs 1,38,459 million of restricted cash,” the release said.

Shares of IndiGo declined 1.89 per cent to close at Rs 5,023.90 on the BSE.