By Kavita Mistry 
InterGlobe Aviation Ltd (IndiGo), India’s largest airline, reported a net loss of ₹2,582 crore for the quarter ended September 30, 2025 (Q2 FY26), primarily due to the rupee’s depreciation and the revaluation of dollar-denominated lease obligations. This marks a wider loss compared with ₹987 crore in the same quarter last year, even as core operations remained profitable.
Excluding the impact of foreign exchange losses, IndiGo posted an operational profit of ₹104 crore and a 10.4 per cent rise in total revenue to ₹19,599 crore, supported by disciplined capacity deployment and firm yields.
“Our optimised capacity deployment has enabled us to deliver a 10 per cent growth in topline revenue and, excluding the currency impact, an operational profit of ₹104 crore as compared to an operational loss last year,” said Pieter Elbers, chief executive officer, IndiGo. “As India’s aviation sector continues to mature, we recognise the importance of structurally optimising capacity during seasonally weaker periods to sustain profitability.”
Forex and fuel dynamics weigh on results
The rupee’s weakness against the US dollar reversed an otherwise profitable quarter on an operational basis. Total expenses for the quarter rose 18.3 per cent to ₹22,081 crore, driven by higher non-fuel costs and forex translation losses. Fuel costs declined 9.7 per cent year-on-year to ₹5,962 crore, but non-fuel expenses increased sharply to ₹16,119 crore, reflecting higher lease and maintenance costs. IndiGo’s cost per available seat kilometre (CASK) excluding fuel and forex increased 3.9 per cent to ₹3.01, while fuel CASK declined 16.3 per cent to ₹1.45.
Despite the bottom-line impact, IndiGo’s EBITDAR excluding forex improved significantly by 42.5 per cent to ₹3,800 crore, indicating strong core profitability.
Revenue, yields and capacity metrics steady
Passenger ticket revenues rose 11.2 per cent to ₹15,967 crore, supported by sustained demand and stable yields, which improved 3.2 per cent to ₹4.69. Ancillary revenue grew 14.2 per cent to ₹2,141 crore, reflecting stronger traction in non-fare income streams. Capacity, measured in available seat kilometres (ASKs), increased 7.8 per cent to 41.2 billion, while passenger traffic rose 3.6 per cent to 28.8 million. The load factor remained stable at 82.5 per cent, reflecting balanced utilisation amid steady capacity growth.
Fleet and reliability
As of September 30, 2025, IndiGo operated a fleet of 417 aircraft, including 180 A320neos, 153 A321neos, 47 ATRs, three A321 freighters and four wide-body aircraft on damp lease. The airline operated up to 2,244 daily flights during the quarter, connecting 94 domestic and 41 international destinations.
The carrier maintained a technical dispatch reliability of 99.89 per cent and on-time performance of 89.8 per cent across six major metros, with a flight cancellation rate of 0.5 per cent.
Liquidity position remains strong
Despite the quarterly loss, IndiGo’s liquidity position remains strong with a total cash balance of ₹53,515 crore, including ₹38,517 crore of free cash and ₹14,999 crore of restricted cash. Total debt, including ₹49,651 crore in capitalised lease liabilities, stood at ₹74,814 crore.
“The quarter saw stabilisation from July onwards and a strong recovery through August and September,” said Elbers. “We have nudged up our capacity guidance for full-year FY26 to the early teens. The airline remains focused on sustainable growth backed by cash discipline, strong network execution and customer trust.”
Outlook
IndiGo expects capacity growth in the high teens for Q3 FY26 compared with the same period last year. The airline continues to focus on yield management, operational reliability and fleet efficiency to align with increasing travel demand through the second half of the fiscal year.
The contrasting performance — a reported loss driven by forex volatility versus a solid operational turnaround — highlights both the opportunities and structural risks facing Indian airlines as they scale up in a volatile macro environment.
Key highlights: Q2 FY26 (year-on-year)
- Net loss: ₹2,582 crore (vs ₹987 crore loss in Q2 FY25)
- Profit excluding forex: ₹104 crore (vs ₹754 crore loss)
- Total revenue: ₹19,599 crore (+10.4%)
- Operational revenue: ₹18,555 crore (+9.3%)
- EBITDAR (ex-forex): ₹3,800 crore (+42.5%)
- Passengers carried: 28.8 million (+3.6%)
- Cash balance: ₹53,515 crore
