InterGlobe Aviation Ltd., the company behind India's largest airline IndiGo, announced a net loss of Rs 1,879.1 crore for the second fiscal quarter. The airline operator cited exceptionally high fuel costs and the depreciation of the Indian rupee as primary factors weighing on its profitability during the September quarter.
Despite the substantial loss, the company reported a robust 26% year-on-year increase in revenue, reaching Rs 23,363 crore, up from Rs 18,555.3 crore in the same period last year. Total expenses for the quarter also climbed by 18.6% year-on-year to Rs 26,188.4 crore.
Operational Challenges and Strategic Responses
Willie Walsh, CEO of InterGlobe Aviation, acknowledged the difficult period. "The seasonally soft September quarter saw exceptionally elevated fuel costs and continued geopolitical turmoil," Walsh stated. "We responded with prudent capacity reduction and yield management, supporting strong revenue performance but only partially offsetting the higher costs. Despite these actions, the quarter resulted in a net loss of around 19 billion rupees."
The company's EBITDA Margin improved to 8.16% in Q2, compared to 3.12% in the year-ago period. However, several operational metrics reflected the challenging environment:
- Capacity, measured in Available Seat Kilometers (ASKs), decreased by 1% to 40.8 billion.
- The number of passengers carried fell by 4.7% to 27.5 million.
- Yield per passenger increased significantly by 34.3% to Rs 6.30.
- Load factor saw a slight decrease of 2.2 percentage points, settling at 80.3%.
- Fuel Cost per Available Seat Kilometer (CASK) surged by 68.9% to Rs 2.44, highlighting the impact of rising fuel prices.
Financial Position and Future Outlook
As of September 30, 2026, IndiGo maintained a total cash balance of Rs 52,685.4 crore, comprising Rs 39,929 crore in free cash and Rs 12,756.4 crore in restricted cash. The airline's total debt, including capitalized operating lease liability, stood at Rs 87,303.1 crore.
In terms of network and fleet expansion, IndiGo's fleet grew to 442 aircraft during the quarter, a net increase of 10 passenger aircraft. The fleet includes a mix of A320 CEOs, A320 NEOs, A321 NEOs, A321XLRs, ATRs, A321 freighters, and B787s. During the quarter, the airline operated a peak of 2,020 daily flights, serving 97 domestic and 36 international destinations.
Walsh reiterated the company's commitment despite the headwinds: "We remain focused on managing the near-term challenges while continuing to invest for the future. India’s long-term aviation opportunity remains compelling, and our priorities remain clear: safe and reliable operations, rigorous cost discipline, and disciplined growth that creates sustainable value."