IndiGo Reports 78% Decline in Q3 Profit Due to Disruptions

IndiGo, India’s largest airline, has reported a significant 78% decrease in net profit in the December quarter, totaling Rs 549.1 crore. This decline is attributed to flight disruptions and the implementation of new labor laws, which have impacted the company’s earnings.

The airline’s net profit in the October-December quarter dropped from Rs 2,448.8 crore in the previous year to Rs 549.1 crore in the current year, as stated in a company release.

IndiGo incurred a total hit of Rs 1,546.5 crore in the third quarter, with Rs 577.2 crore attributed to the extensive flight disruptions experienced early in December and another Rs 969.3 crore due to the new labor laws’ enforcement.

The airline was fined Rs 22.2 crore for the flight disruptions, which has been accounted for as exceptional items in the financial report.

Additionally, currency fluctuations related to dollar-based future obligations amounted to Rs 1,035 crore in the December quarter.

Operational Challenges and Financial Performance

Despite facing major operational disruptions in the December quarter, IndiGo managed to achieve a revenue of approximately Rs 245 billion, marking a 7% growth. The reported profit for the quarter was around Rs 5 billion, with an underlying profit (excluding exceptional items and forex) of Rs 31 billion, according to CEO Pieter Elbers.

During the December quarter, the airline transported nearly 32 million passengers, bringing the total number of passengers flown in the past year to approximately 124 million.

The exceptional items for the quarter ended December 2025 amounted to INR 15,465 million, including provisions for new labor laws implementation, costs related to operational disruptions, and penalties as per DGCA orders.

Future Projections and Growth Plans

Looking ahead to the coming March quarter, IndiGo anticipates a capacity growth of around 10% in terms of ASKs compared to the previous year, particularly on international routes. ASK serves as an indicator of capacity.

The airline’s fleet consisted of 440 planes at the end of the December quarter, with plans for further expansion and network growth.

CEO Pieter Elbers emphasized that the company’s long-term fundamentals remain strong, supported by an increasing fleet and a growing domestic and international network.

Regulatory Actions and Financial Impacts

In response to the December flight disruptions, DGCA imposed fines amounting to Rs 22.20 crore and issued warnings to top executives. The airline was directed to provide a bank guarantee of Rs 50 crore for systemic corrections.

IndiGo has committed to ensuring operational stability with no flight cancellations post-February 10, 2026, based on the approved network and crew strength adjustments.

As of December, the airline’s total cash balance stood at Rs 51,606.9 crore, with a breakdown of free cash and restricted cash. The total debt, including operating lease liability, was Rs 768,583 million.