Hit by a declining rupee amid a challenging external environment, InterGlobe Aviation, the parent of IndiGo airline, reported a net loss of Rs 2,536 crore for the quarter ended March 31, 2026 (Q4FY26). It reported a net profit of Rs 3,067 crore in the year-ago quarter (Q4FY25).
The airline’s revenue from operations grew by just 1% year-on-year to Rs 22,438 crore during the reported quarter while total cost grew by 30% to Rs 25,932 crore. Passenger ticket revenues declined marginally to Rs 19,425 crore.
Excluding the impact of foreign exchange and exceptional items, IndiGo reported a net profit of Rs 1,921 crore in Q4FY26. A declining rupee severely impacts airlines in India by inflating operational costs, triggering foreign-exchange losses and squeezing profit margins as roughly 60% of their expenses, including aviation turbine fuel (ATF), aircraft leasing and maintenance are dollar-denominated.
At 95 per dollar, the rupee has declined more than 5% so far in calendar year 2026. In the last one year, the decline is around 10%.
For the full financial year 2025-26, IndiGo reported a loss of Rs 2,393 crore. The airline had reported a profit of Rs 7,258 crore in FY2024-25. Revenue from operations for the full year grew by 5% to Rs 84,962 crore.
On operational metrics, Indigo’s capacity increased by 3.4% to 43.6 billion Available Seat Kilometres (ASKs) in Q4FY26. Passenger volume declined by 1.1% to 31.6 million during the quarter while Yield decreased by 2.2% to Rs 5.20 (INR/KM).
“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. During the year, our capacity grew by 9.5% and total income increased by over 6%. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of INR 75 billion (Rs 7500 crore,” said Rahul Bhatia, MD of InterGlobe Aviation.
Bhatia added, “We continue to maintain a strong balance sheet with substantial liquidity, demonstrating resilience through prolonged periods of volatility. While the near term remains volatile, we remain firmly focused on disciplined execution, cost efficiency, and long-term value creation.”
Industry experts have cited headwinds to continue for the aviation sector in the near future due to a sharp rise in ATF prices amid the US-Iran tensions and the declining rupee. To cut expenses, airlines are cutting down on flights on non-profitable routes.
IndiGo’s fleet size stood at 441 aircraft at the end of Q4FY26, a net increase of just 1 passenger aircraft during the quarter.