New Delhi: India’s largest airline, IndiGo, slipped into a consolidated net loss of ₹238 crore in the first quarter of FY27, despite posting a strong rise in revenue, as soaring fuel prices, foreign exchange fluctuations and disruptions linked to the Middle East conflict weighed heavily on its profitability.
InterGlobe Aviation, the parent company of IndiGo, reported the loss for the April-June quarter, compared to a net profit of ₹2,176.3 crore in the corresponding period last year. However, the airline’s total income increased 20% YoY to ₹25,614.1 crore, up from ₹21,542.6 crore, driven by healthy growth in passenger traffic and ancillary services.
Passenger ticket revenue climbed 23% YoY to ₹21,878.6 crore, while ancillary revenue, which includes services such as baggage fees and seat selection, rose 13.9% to ₹2,453.4 crore. Despite the revenue growth, overall expenses surged 34% YoY, offsetting gains.
Aircraft fuel expenses nearly doubled to ₹10,833 crore from ₹5,833 crore a year earlier, making fuel the biggest factor behind the weak financial performance. The airline also cited adverse forex movements and operational disruptions caused by tensions in the Middle East as key challenges during the quarter. However, forex losses narrowed to ₹83 crore from ₹147 crore in the year-ago period.
Operational performance also weakened during the quarter. EBITDAR declined to ₹3,833 crore from ₹5,739 crore last year, while the EBITDAR margin dropped to 15.6% from 28%. Capacity, measured in Available Seat Kilometres (ASKs), rose 2.9% to 43.5 billion, while passenger numbers increased marginally by 0.7% to 31.3 million.
Looking ahead, IndiGo said capacity in Q2 FY27 is expected to remain broadly flat compared with the same quarter last year due to seasonally weaker demand and continued uncertainty affecting travel between India and West Asia. The airline, however, expressed confidence that aircraft utilisation will improve as demand strengthens in the following quarters.
