InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, reported a 77.5% year-on-year decline in net profit for the third quarter of fiscal year 2026, after the low-fare carrier suffered a massive operational “meltdown” in December 2025 and incurred significant one-time regulatory costs.
The airline reported a consolidated net profit of INR 550 crore (USD 56 million) for the quarter ended December 31, 2025, a steep drop from the INR 2,449 crore (USD 266 million) recorded during the same period the previous year.
The results fell significantly short of analyst expectations, which had projected a profit of approximately INR 1,997 crore (USD 217 million).
The bottom line was heavily impacted by two major exceptional items with a total cost of INR 1,546.5 crore (USD 168 million).
The airline incurred a INR 577 crore (USD 63 million) hit following a period of chaos between December 3 and 5, 2025. Stricter Indian Directorate General of Civil Aviation (DGCA) Flight Duty Time Limitation (FDTL) rules for pilots led to approximately 4,500 flight cancellations and widespread delays during the peak holiday season.
A massive INR 969 crore (USD 105 million) was set aside as a one-time provision for the implementation of new national labour codes.
Additionally, the airline faced a foreign exchange loss of INR 1,113 crore (USD 121 million), further squeezing margins.
Despite the profit slump, IndiGo achieved its highest-ever quarterly earnings. Revenue from operations rose 6.2% year-on-year to INR 23,472 crore (USD 2.55 billion) , driven by a 11.2% increase in capacity (Available Seat Kilometers).
CEO Pieter Elbers remained optimistic about the airline’s trajectory. He said: “Despite these operational disruptions, IndiGo delivered a record topline. We welcomed nearly 32 million customers this quarter and 124 million in the calendar year 2025, a new record. Our long-term fundamentals remain strong, backed by our expanding fleet and growing international network.”
Looking ahead, IndiGo expects its Q4 FY26 capacity to grow by approximately 10% year-on-year. However, the airline has been directed by the DGCA to reduce its flight schedule by 10% through March to align with new crew duty regulations and prevent a repeat of the December disruptions.
IndiGo Q3 highlights:
- Passenger growth: The airline flew 31.9 million passengers in Q3, a 2.8% increase compared to last year.
- Fleet expansion: IndiGo’s fleet grew to 440 aircraft by the end of December, including its first Airbus A321XLR.
- Long-haul push: Capacity on international routes surged by 39%, with the airline now operating wide-body Boeing 787-9s to expand its global footprint.
PHOTO: Airbus
IndiGo recently solidified its aggressive push into the long-haul international market.
