Runway closure, forex headwinds hit IndiGo’s Q2, first Airbus A321 XLR to join fleet in December: CEO Pieter Elbers

An IndiGo Airlines aircraft flies low as it prepares to land in Mumbai

India’s largest airline IndiGo reported a widened loss of Rs 2,582.1 crore for the September quarter, hit by forex losses and higher expenses, even as operational performance improved and recovery gained momentum through the quarter.

The airline, which had posted a loss of Rs 986.7 crore in the same period last year and a profit of Rs 2,176.3 crore in the previous quarter, said it expects to induct its first long-range Airbus A321 XLR aircraft in December as part of its international expansion plans.

Total income rose 10.4% year-on-year to Rs 19,599.5 crore, while total expenses climbed 18.3% to Rs 22,081.2 crore, according to a regulatory filing. Foreign exchange losses surged to Rs 2,892.1 crore from Rs 240.6 crore a year ago.

IndiGo CEO Pieter Elbers said the June–September quarter was marked by multiple challenges, including the runway closure at Delhi airport, which disrupted operations and impacted earnings.

“The year began with several challenges, particularly the runway closure in Delhi, which impacted our schedules and network performance,” Elbers said during the post-results conference call. “However, we started to see a gradual recovery from July, and by mid-September, with the runway reopening, operations were back on track. Overall, we are satisfied with the recovery momentum.”

He noted that optimized capacity deployment helped drive a 10% topline revenue growth and an operational profit of Rs 104 crore, excluding currency impact, compared with an operational loss last year.

“As India’s aviation sector continues to grow and mature, we recognize the importance of structurally optimizing capacity during seasonally weaker periods to sustain profitability,” Elbers said. “The quarter also had a very strong operational performance as IndiGo continues to lead the on-time performance charts, customer appreciation, and network expansion.”

Despite the near-term hit, Elbers reaffirmed IndiGo’s commitment to cost leadership and operational discipline.

“Cost remains an important element for IndiGo. We constantly work towards industry-leading cost optimization, supported by our digital initiatives that enhance efficiency and reduce the cost of servicing customers,” he said.

Elbers said the airline saw “stabilization in July and a strong recovery through August and September,” adding that IndiGo has scaled up operational plans for the second half of FY26 to meet growing demand.

“With that, we have nudged up our capacity guidance for the full financial year 2026 to early teens growth,” he added.

IndiGo’s parent InterGlobe Aviation reported passenger ticket revenues of Rs 15,967 crore, up 11.2% year-on-year, and ancillary revenues of Rs 2,141 crore, up 14.2%. Yield per kilometre rose 3.2% to Rs 4.69.

The airline, which had a 64.3% domestic market share in September, continues to expand its international network, including bringing in leased Boeing 787 Dreamliners. The upcoming Airbus A321 XLR, with 183 economy and 12 stretch seats, will allow IndiGo to open longer routes and strengthen its global presence.

“We have done very well on the operational performance,” Elbers said during a virtual media briefing after the results.

Chief Financial Officer Gaurav M. Negi said the number of aircraft on ground (AOG) currently remains in the 40s and is expected to stay range-bound through the end of the year. He added that hedging actions and higher foreign currency revenues from international operations will help cushion the impact of currency movements.