Fuel Costs Hit IndiGo as Airline Reports Loss

India’s largest domestic airline IndiGo (InterGlobe Aviation) reported a net loss of ₹238 crore in the April–June quarter due to rising aviation fuel prices, rupee depreciation against the dollar, and disruptions caused by airspace restrictions amid West Asian tensions. The airline had posted a net profit of ₹2,176.30 crore in the same quarter last year. Despite the loss, IndiGo’s total revenue increased from ₹21,542.60 crore to ₹25,614.21 crore, while expenses rose by 34% to ₹25,852.50 crore. Fuel costs surged 86% to ₹10,832.90 crore. IndiGo had 432 aircraft by the end of the June quarter, with total cash reserves of ₹52,884.60 crore.

IndiGo expects its financial performance to remain subdued in the July–September quarter due to weak demand. Meanwhile, the Competition Commission of India (CCI) is reviewing allegations of unfair business practices following major flight disruptions last December. IndiGo has submitted five proposals, including a crisis management team, passenger assistance centres, temporary release of unused airport slots, free rebooking within 48–72 hours, fare limits during emergencies, and improved passenger support facilities. If approved by the CCI, the investigation may conclude without imposing a penalty.