India’s budget airline IndiGo reported a consolidated net loss of ₹238 crore for the first quarter of FY27, compared with a net profit of ₹2,176 crore in the corresponding period last year, as higher fuel prices, rupee depreciation and disruptions arising from the West Asia conflict weighed on profitability.
Despite the earnings setback, the airline posted a 19.9% year-on-year increase in revenue from operations to ₹24,584 crore, supported by healthy passenger demand and improved ticket yields.
Fuel costs and forex drag profitability
IndiGo’s total expenses surged 34.4% to ₹25,852 crore during the quarter, reflecting rising aviation turbine fuel (ATF) prices, adverse foreign exchange movements and operational challenges linked to the geopolitical situation in West Asia.
The airline said these factors offset the benefits of higher revenue and strong passenger traffic during the quarter.
Passenger demand remains robust
IndiGo served more than 31 million passengers during the April-June quarter, with demand remaining resilient despite external challenges.
IndiGo Managing Director Rahul Bhatia said the airline operated in a volatile environment marked by elevated fuel costs and network-related constraints in the Middle East.
“The first quarter was shaped by a volatile operating environment, with elevated fuel costs and network-related constraints in the Middle East impacting profitability. At the same time, demand remained healthy and our revenue performance improved year-on-year, supported by improved yields and continued customer preference for IndiGo,” he said.
Bhatia added that higher fuel costs and rupee depreciation resulted in a loss of around ₹2 billion during the quarter.
“We remain focused on managing capacity prudently, maintaining cost discipline and responding to market conditions with agility. While near-term uncertainties remain, we continue to strengthen our network, enhance customer choice and create sustainable value for all stakeholders,” he said.
Capacity to remain flat in Q2
The airline expects capacity, measured in Available Seat Kilometres (ASKs), to remain broadly flat in the second quarter of FY27 compared with the same period last year.
The outlook reflects seasonally weaker travel demand and continued uncertainty affecting flights between India and West Asia, resulting in lower aircraft utilisation.
However, IndiGo expects aircraft utilisation to improve progressively after the current quarter as market conditions stabilise.
Operational performance
During the quarter, IndiGo maintained a technical dispatch reliability of 99.9%, recorded an on-time performance of 86.9% across 10 major airports and a flight cancellation rate of just 0.3%.
As of June 30, 2026, the airline operated a fleet of 432 aircraft, including Airbus A320 and A321 variants, ATR turboprops, Boeing 787 aircraft on damp lease and dedicated freighters.
IndiGo operated a peak of 2,298 daily flights during the quarter, serving 97 domestic and 46 international destinations, reinforcing its position as India’s largest airline by market share.