InterGlobe Aviation, the parent company of budget airline IndiGo, reported a consolidated net loss of ₹2,536 crore for the quarter ended March 31, 2026, compared with a net profit of ₹3,068 crore recorded in the corresponding quarter last fiscal, as rising fuel prices, rupee depreciation and capacity-related constraints impacted earnings.
The airline said the quarter was marked by a difficult operating environment that adversely affected profitability despite stable operational performance.
Revenue from operations during the fourth quarter stood at ₹22,438 crore, marginally higher than ₹22,152 crore reported in the year-ago period. The airline also incurred a one-time charge of ₹250 crore during the quarter.
Board approves finance lease prepayment
The board of the airline approved the partial prepayment of finance lease obligations to InterGlobe Aviation Financial Services IFSC Private Limited, a wholly-owned subsidiary, in one or more tranches for an aggregate amount of up to $450 million.
According to the airline, the funds will be utilised by the subsidiary towards the acquisition of aviation assets, enabling ownership of aircraft, aircraft engines and aircraft parts.
Capacity expansion continues despite disruptions
IndiGo said its capacity increased by 3.4% to 43.6 billion available seat kilometres (ASKs) during the quarter, despite disruptions linked to the ongoing conflict in the Middle East.
Passenger traffic, however, declined marginally by 1.1% to 31.6 million passengers. Yield fell 2.2% to ₹5.20, while load factor declined by 1.7 percentage points to 85.8%.
The airline noted that exceptionally sharp rupee depreciation, labour law-related changes and broader operational challenges offset operational profitability during the quarter.
Management highlights resilience amid volatility
IndiGo Managing Director Rahul Bhatia said FY26 remained an exceptionally challenging year for the airline industry, significantly affecting profitability.
“FY26 was marked by an exceptionally challenging operating environment, which materially impacted our profitability. Despite these conditions, the underlying performance of the business remained resilient,” he said.
He added that the airline recorded a 9.5% increase in capacity and over 6% growth in total income during the financial year.
Bhatia further said that excluding the impact of foreign exchange fluctuations and exceptional items, IndiGo delivered a profit of ₹7,500 crore during the year.
“We continue to maintain a strong balance sheet with substantial liquidity, demonstrating resilience through prolonged periods of volatility,” he added.