The country’s largest airline, IndiGo, sees significant growth opportunities in the aviation market despite the ongoing geopolitical challenges and elevated jet fuel prices. The airline stated that it will not compromise on its core narrow-bodied short-haul operations as it gears up to induct wide-body aircraft to facilitate long-haul operations.
“I firmly believe that despite the short-term turbulence and challenges that we face, the long-term future for aviation in India continues to be very positive,” said IndiGo Chief Executive Officer (CEO) Willie Walsh on Monday.
He added that the company’s second quarter performance was dominated by the geopolitical issues, which are having a “very significant” impact on operations; specifically on jet fuel prices which are at a record high level. He cautioned that airfares could get higher due to this even as the airline is trying to absorb as much of the cost increase as possible.
Last week, IndiGo reported a consolidated net loss of Rs 1,879 crore for the July–September quarter of this fiscal (Q2FY27). The loss is primarily attributed to aircraft fuel expenses which rose 67% to Rs 9,967 crore in Q2FY27 from Rs 5,962 crore in Q2FY26.
Given that ATF prices are expected to remain high in the near future due to the West Asia conflict, Walsh said that the airline is reviewing its longstanding policy of staying away from fuel hedging, particularly in view of its planned long-haul expansion.
“Hedging is a very difficult decision to make…If we were to hedge, given that our competitors in the domestic market aren't hedged, then you're introducing an additional risk, which clearly goes against the whole principle of hedging,” said Walsh.
Giving an example of Asian and European airlines who actively participate in fuel hedging, the CEO said that the airline's planned long-haul expansion offered an opportunity to review its policy, as several international competitors hedge a substantial portion of their fuel requirements.
“At the moment, we're not hedging and we're not planning to hedge until we've completed our comprehensive review,” he said. IndiGo is gearing up to enter the wide-body long-haul segment with its Airbus A350-900 aircraft. The airline expects the induction of the first A350 in the second quarter of 2028.
Walsh also called for lower airport charges and taxes. “Airport charges are too high. We would do much better if we had lower taxes. So lower taxes, lower airport charges. That's the way forward,” he said. He added that airports, which effectively operate as monopolies, should adopt more competitive pricing.