New Delhi— India’s largest airline IndiGo slipped into a consolidated net loss of Rs 2,394 crore in financial year 2025-26, reversing a profit of Rs 7,258 crore recorded in the previous fiscal, as rupee depreciation, higher operating expenses and disruptions linked to the ongoing Iran-Israel-US conflict in West Asia hurt profitability.
The airline also posted a consolidated net loss of Rs 2,537 crore in the January-March quarter, compared to a profit of Rs 3,067 crore in the corresponding quarter of the previous year.
InterGlobe Aviation Ltd, IndiGo’s parent company, said adverse foreign exchange movements and exceptional items significantly impacted earnings during the year. Excluding forex impact and exceptional charges, the airline reported an adjusted profit of Rs 7,502 crore for FY26.
Despite the losses, IndiGo’s revenue continued to grow. Total income for FY26 rose 6.4 per cent to Rs 89,513 crore from Rs 84,098 crore a year earlier, while revenue from operations increased 5.1 per cent to Rs 84,962 crore.
The airline also expanded operationally during the year. Capacity, measured in available seat kilometres (ASKs), increased 9.5 per cent to 172.4 billion, while passenger traffic rose 4 per cent to 123.4 million passengers.
However, key profitability indicators weakened. Yield declined 1.7 per cent to Rs 5.06, while load factor dropped to 84.4 per cent from 86 per cent in FY25. EBITDAR fell sharply by 29 per cent to Rs 15,089 crore compared to Rs 21,252 crore in the previous year.
In the March quarter, IndiGo’s capacity rose 3.4 per cent to 43.6 billion ASKs despite operational disruptions caused by tensions in West Asia. Passenger traffic, however, declined marginally by 1.1 per cent to 31.6 million, while load factor fell by 1.7 percentage points to 85.8 per cent.
Revenue from operations during the quarter rose only 1.3 per cent to Rs 22,438 crore, while total income increased 3.2 per cent to Rs 23,831 crore.
Expenses surged significantly during the quarter, putting further pressure on margins. Total costs jumped 30.1 per cent year-on-year to Rs 25,932 crore. Although fuel expenses declined by 1.5 per cent, non-fuel costs rose sharply by 46.4 per cent to Rs 19,282 crore.
The airline also booked an exceptional charge of Rs 250 crore during the quarter related to additional provisions arising from new labour laws.
Managing Director Rahul Bhatia described FY26 as an “exceptionally challenging operating environment” that materially affected profitability. However, he said the underlying business remained resilient and the airline continued to focus on disciplined execution, cost efficiency and long-term value creation.
As of March 31, IndiGo’s total cash balance stood at Rs 51,651 crore, including free cash reserves of Rs 36,216 crore. Total debt, including capitalised operating lease liabilities, was reported at Rs 77,749 crore.
The airline ended FY26 with a fleet of 441 aircraft and expects capacity growth of around 3-4 per cent during the first quarter of FY27.
