InterGlobe Aviation, the operator of low-cost airline IndiGo, reported a 20% decline in net profit for the quarter ending June (Q1FY26) owing to a sharp increase in ‘other costs’ excluding fuel. The company’s profit stood at Rs 2,176 crore in Q1FY26 as compared to a profit of Rs 2,728 crore in the same quarter a year ago (Q1FY25).
Revenue for the country’s largest airline rose 5% year-on-year to Rs 20,496 crore in Q1FY26.
IndiGo reported a 26.5% rise in the airline's airport fees and charges to Rs 1,627 crore in Q1FY26 from Rs 1,286 crore a year ago quarter. The company’s depreciation and amortization expenses rose 38% y-o-y to Rs 2,566 crore while foreign exchange losses surged 156% y-o-y to Rs 147 crore. Overall, total expenses surged 10% y-o-y to Rs 19,232 crore in Q1FY26.
The sharp rise in the airline's non-fuel expenses was controlled by the fall in aviation turbine fuel prices during the quarter. The airline's aircraft fuel expenses fell to Rs 5,833 crore during Q1FY26 from Rs 6,416 crore in Q1FY25.
IndiGo’s decline in profit came as Indian carriers continue to face increased operational costs following the closure of Pakistan airspace on April 24 after tensions between the two nations heightened post the brutal terror attack in Pahalgam.
CEO Pieter Elbers said that the June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector.
“Despite these industry-wide disruptions, we reported a net profit of Rs 2,1763 million with a net profit margin of around 11% for the quarter ended June 2025. While the revenue environment saw moderation, demand for air travel held strong as we served more than 31 million passengers during the quarter, reflecting a growth of around 12 percent on a year-over-year basis,” stated Elbers. The CEO remains optimistic about the growth of air travel.
The airline's yield, which is the average money earned from a passenger for every kilometre travelled, fell 5% to Rs 4.98 per kilometre in the quarter. The company reported owning a fleet of 416 aircraft as of June 30. During its peak, IndiGo operated 2,269 daily flights, including non-scheduled flights.
IndiGo also announced extension of its codeshare agreement with KLM, the flag carrier of the Netherlands, offering enhanced connectivity to IndiGo customers across Europe and the UK on KLM’s network. The agreement will allow IndiGo to place its code on KLM operated routes to 30 destinations across these regions via Amsterdam.
IndiGo has recently commenced its nonstop, long-haul operations from Mumbai to Amsterdam using its Boeing 787-9 Dreamliner aircraft, damp-leased from Norse Atlantic Airlines.
“We are confident that our customers will value and benefit from the seamless connectivity offered through the vast combined networks of IndiGo and KLM. This collaboration aligns with our vision of giving wings to the nation and fostering more opportunities for boosting trade and tourism between India, Europe and rest of the world,” said Elbers.