Newsletter
IndiGo slipped into a loss this quarter despite reporting strong revenue growth. The airline blamed soaring jet fuel prices, a weaker Rupee and disruptions caused by the Middle East conflict for the weak profitability.
The numbers:
Net profit: net loss of ₹382 crore vs net profit of ₹2,161 crore (YoY).
Revenue: up 20% at ₹24,584 crore vs ₹20,496 crore (YoY).
Total expenses: up 35.1% to ₹25,853 crore.
Aircraft fuel expense: jumped 86% to ₹10,830 crore vs ₹5,833 crore.
Foreign exchange loss: improved to ₹83 crore from ₹147 crore.
Foreign exchange loss is the loss a company incurs when changes in currency values make its overseas payments or earnings more expensive.
Passenger traffic and operations
Despite the loss, IndiGo continued to carry more passengers.
Passengers flown: up 0.7% to 31.3 million.
Capacity: up 2.9% to 43.5 billion.
Why profits fell: revenue increased, but costs rose much faster.
Aircraft fuel expenses almost doubled as crude oil prices surged above $100 per barrel during the quarter following the Iran conflict.
Managing Director Rahul Bhatia said healthy passenger demand and better ticket prices supported revenue, but higher fuel costs and operational challenges weighed heavily on profits.
Outlook: the airline expects capacity in Q2FY27 to remain broadly flat compared to the same period last year.
It also said demand is usually weaker during this time of the year, while uncertainty around travel between India and Middle East has also affected aircraft utilisation. However, it expects utilisation to gradually improve in the coming quarters as conditions normalise.
