Rahul Bhatia, the co-founder and managing director of India’s largest airline, IndiGo, said on Thursday that there will be a massive conflict of interest if airport operators are allowed to own airlines. He also said that, over a period of time, it would actually be against the interests of consumers.
Responding to a query during the analysts' call to discuss the airline's Q1FY27 results, Bhatia said, “We are reading this news as you are. All I can say is that if the news has any merit, one, it has no global precedence, because it typically would reflect a massive conflict of interest, and over a period of time, it would actually be against the interest of consumers.”
He added, “This said, we should just watch this space and how it develops… then we can take a considered view on how to approach things into the future.”
His comments come against the backdrop of emerging reports that billionaire Gautam Adani’s port-to-power conglomerate Adani Group is proposing to get into the airline business and that the government is reportedly looking at relaxing norms to allow airport operators to have ownership of airlines. At present, Adani owns eight airports, including Mumbai, Ahmedabad, and Lucknow.
Under the current provisions, private airport operators cannot own more than a 10% stake in any airline. When contacted, Adani Group declined to comment on the development. The government has also not confirmed whether it is reviewing the policy to allow private airport operators to launch airlines.
Sources in the government, however, said that they are very keen on increasing competition in the aviation sector, given that only two players now control more than 90% of the domestic market. “India needs more airlines to serve the growing number of air passengers. The sector can easily have 4-5 big players, said a senior official requesting anonymity.
Meanwhile, InterGlobe Aviation Ltd, the parent of India’s largest airline IndiGo, on Thursday reported a standalone net loss of Rs 382 crore for the quarter ended June 30, 2026 (Q1FY27) as against a net profit of Rs 2,161 crore in the year-ago period (Q1FY26). The losses are attributed to higher jet fuel prices triggered by the West Asia crises and adverse foreign exchange movement due to the continuous weakening of the rupee.
Commenting on the June quarter results, Bhatia said that the first quarter was shaped by a volatile operating environment, with elevated fuel costs and network-related constraints in the Middle East impacting profitability. He added that demand remained healthy and their revenue performance improved year-on-year, supported by improved yields and continued customer preference for IndiGo.
The pressure of fuel costs and rupee depreciation resulted in a loss of around Rs 200 crore for the quarter, Bhatia said, adding that; “While near-term uncertainties remain, we continue to stay committed to our long-term priorities of strengthening the network, enhancing customer choice, and creating sustainable value for all stakeholders.”