IndiGo Reports ₹382 Crore Q1 Loss As Fuel Costs, Iran War Hit Profitability

InterGlobe Aviation Ltd, the parent company of India’s largest airline IndiGo, reported a net loss of ₹382 crore for the April-June quarter of FY27, reversing a profit of ₹2,161 crore recorded in the same period last year.

The airline attributed the decline in profitability to a sharp rise in fuel prices following the Iran conflict, adverse foreign exchange movements and operational challenges affecting Middle East routes.

Despite the earnings pressure, IndiGo reported strong revenue growth during the quarter. Revenue from operations increased 20% year-on-year to ₹24,584 crore in Q1 FY27, compared with ₹20,496 crore in the corresponding quarter of the previous year.

IndiGo Managing Director Rahul Bhatia said the first quarter was impacted by a volatile operating environment, including elevated fuel costs and network-related disruptions in the Middle East.

However, he added that demand remained healthy, supported by improved yields and continued customer preference for the airline.

The airline served more than 31 million passengers during the quarter, with revenue performance improving compared with the previous year. Bhatia said the company remained focused on managing capacity efficiently, maintaining cost discipline and adapting to changing market conditions.

According to IndiGo’s quarterly performance data, capacity increased 2.9% to 43.5 billion available seat kilometres (ASKs), while passenger numbers rose 0.7% to 31.3 million. Yield improved 21.3% to ₹6.04, although the load factor declined 1.3 percentage points to 83.3%.

The airline said fuel cost pressures and rupee depreciation contributed to around ₹200 crore of losses during the quarter. IndiGo shares closed 1.7% lower at ₹5,030 apiece on the BSE on July 23 following the earnings announcement.

As of June 30, IndiGo maintained a strong liquidity position with a total cash balance of ₹52,885 crore. This included ₹39,039 crore in free cash and ₹13,846 crore in restricted cash.

Looking ahead, the airline expects capacity growth to remain broadly flat in the second quarter of FY27 due to seasonal weakness in travel demand and uncertainty affecting India-West Asia routes. However, IndiGo said aircraft utilisation is expected to improve as demand strengthens beyond the weaker season.