India’s largest airline IndiGo slipped into a consolidated net loss of Rs 2,394 crore in financial year 2026, reversing a profit of Rs 7,258 crore reported in the previous year, as sharp rupee depreciation, higher operating costs due to ongoing Iran, Israel and US conflict in Middle East and a difficult business environment weighed on profitability despite growth in capacity and revenue.
The airline also posted a net loss of Rs 2,537 crore in the January-March quarter, compared to a net profit of Rs 3,067 crore in the same period last year.
InterGlobe Aviation Ltd, the parent company of IndiGo, said the impact of foreign exchange movements and exceptional items significantly dragged earnings during the year. Excluding foreign exchange impact and exceptional items, the airline reported an adjusted profit of Rs 7,502 crore for FY26.
The carrier’s total income during 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.
Despite the financial setback, IndiGo continued expanding operations during the year. Capacity, measured in available seat kilometres (ASKs), increased 9.5 per cent to 172.4 billion, while passenger numbers rose 4 per cent to 123.4 million.
However, profitability indicators weakened. Yield declined 1.7 per cent to Rs 5.06, while load factor fell to 84.4 per cent from 86 per cent in FY25. EBITDAR dropped 29 per cent to Rs 15,089 crore from Rs 21,252 crore in the previous year.
For the March quarter, capacity rose 3.4 per cent to 43.6 billion ASKs despite disruptions linked to the continuing conflict in West Asia. Passenger traffic marginally declined 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 increased only 1.3 per cent to Rs 22,438 crore, while total income rose 3.2 per cent to Rs 23,831 crore.
Costs, however, rose sharply. Total expenses during the quarter jumped 30.1 per cent year-on-year to Rs 25,932 crore. While fuel costs fell 1.5 per cent, other costs excluding fuel surged 46.4 per cent to Rs 19,282 crore, increasing pressure on margins.
The airline also booked an exceptional charge of Rs 250 crore during the quarter towards additional provisions linked to new labour laws.
Managing Director Rahul Bhatia said FY26 was marked by an “exceptionally challenging operating environment” that materially impacted profitability, though he maintained that the underlying business remained resilient.
He said IndiGo remained focused on disciplined execution, cost efficiency and long-term value creation despite near-term volatility.
As of March 31, IndiGo had a total cash balance of Rs 51,651 crore, including free cash of Rs 36,216 crore. Total debt, including capitalised operating lease liabilities, stood at Rs 77,749 crore.
The airline ended the financial year with a fleet of 441 aircraft and expects capacity growth of around 3-4 per cent in the first quarter of FY27.
