IndiGo reported a consolidated net loss of ₹1,879 crore for the quarter ended September 30, 2026. High fuel costs and rupee depreciation weighed on the airline’s performance. CEO Willie Walsh said the airline expects to recover about 60 per cent of fuel cost increase. Total income rose 24 per cent.
Airline expects to recover about 60 per cent of fuel cost increase; retains FY28 capacity growth guidance
Persistently high fuel costs, along with rupee depreciation and seasonal weakness, weighed on airline major IndiGo's (InterGlobe Aviation) financial performance during the second quarter of fiscal year 2026-27.
The airline's consolidated net loss narrowed to ₹1,879 crore for the quarter ended September 30, 2026, against a loss of ₹2,582 crore in the corresponding period last year. However, sequentially, the airline's consolidated net loss widened nearly eightfold from ₹238 crore in the first quarter of FY27.
The narrower year-on-year loss reflected a lower net foreign exchange impact, which declined to about ₹1,155 crore from ₹2,686 crore a year earlier.
Currency fluctuations
Notably, excluding currency fluctuations, IndiGo reported a net loss of ₹724 crore, compared with a net profit of ₹104 crore in the year-ago quarter.
Meanwhile, the airline's fuel bill rose 67.2 per cent to ₹9,967 crore from ₹5,962 crore a year earlier. Total expenses increased 18.6 per cent to ₹26,188 crore.
Speaking at a media interaction after the results, IndiGo's Chief Executive Officer Willie Walsh said the airline expects to recover only about 60 per cent of the increase in fuel costs through fare revisions and fuel surcharges.
Besides, he said early indications suggested fuel costs could rise further in the third quarter, with prices expected to remain elevated through the rest of the financial year.
Revenue increased
Furthermore, total income rose 24 per cent to ₹24,312 crore, while revenue from operations increased 25.9 per cent to ₹23,364 crore. Passenger ticket revenue grew 29.3 per cent to ₹20,652 crore, and ancillary revenue increased 15.9 per cent to ₹2,481 crore.
According to Walsh, capacity reduction and yield management supported revenue growth but only partially offset higher costs.
In addition, while IndiGo had opted not to participate in the government's Price Stabilisation Fund scheme for aviation turbine fuel, Walsh said discussions with the government were continuing and the airline could participate in future if appropriate.
Walsh also said the damp-lease arrangement with Norse had added significant costs during the quarter, which would cease after the arrangement ends in October.
On the investor call, he clarified that its termination would not affect IndiGo's longer-term plans, with Airbus A321XLR aircraft being used to maintain its slots at Amsterdam.
The number of passengers carried fell 4.7 per cent to 2.75 crore.
Load factor
Nevertheless, yield increased 34.3 per cent to ₹6.30, while passenger load factor declined by 2.2 percentage points to 80.3 per cent.
IndiGo expects capacity to grow in the early single digits during the third quarter compared with the corresponding period last year.
As of September 30, the airline had 442 aircraft. Its total cash balance stood at ₹52,685 crore, including ₹39,929 crore in free cash. Total debt, including capitalised operating lease liabilities, stood at ₹87,303 crore.