Indigo, too, Reels Under the Impact of Rupee Slide, Fall in Demand

It has not been just one airline’s woes, the entire sector has been impacted. The two bigger ones have reported bigger impacts on their balance sheets. Pro-active measures have come into place – route re-calibration, frequency cuts or down-sizing of capacity on select routes. 

InterGlobe Aviation, the parent of IndiGo, has reported a consolidated net loss of ₹2,537 crore for the March quarter, compared with a net profit of ₹3,067.5 crore in the corresponding period last year. Revenue from operations, however, rose 1% year-on-year to ₹22,438 crore from ₹22,152 crore.

The loss was attributed to “exceptionally sharp rupee depreciation, changes in labour laws and a challenging operating environment” referring to airspace closures and jet fuel prices, among other things.

IndiGo MD Rahul Bhatia said: “FY26 was marked by an exceptionally challenging operating environment, which materially impacted our profitability. Despite these conditions, the underlying performance of the business remained resilient. During the year, our capacity grew by 9.5% and total income increased by over 6%. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of Rs 7,500 crore.”

In FY 26, Indigo suffered a hit of Rs 8,100 crore due to the rupee crashing, of which Rs 4,200 crore impact was in Q4 alone.

Last Dec flight disruption cost the airline another Rs 580 crore and the changed labour law’s impact was Rs 1,200 crore.

“We continue to maintain a strong balance sheet with substantial liquidity, demonstrating resilience through prolonged periods of volatility… While the near term remains volatile, we remain firmly focused on disciplined execution, cost efficiency, and long-term value creation,” Bhatia added.

Indigo airlines had a total cash balance of Rs 51,650.6 crore as on March 31, 2026. And on that date, its total debt (including capitalised operating lease liability) was Rs 77,749.2 crore.

Regarding flight cuts, he said: “…As we enter a seasonally softer demand environment from mid-June onwards, combined with elevated fuel prices, we are adopting a measured approach to optimise capacity. As a part of this, selective recalibration of certain routes is warranted to protect margins, as was done last year as well.”

Regarding the crisis of last Dec operational crisis which affected lakhs of flyers, MD Rahul Bhatia said: “Not only did the Dec disruption cause a significant impact on our results, what transpired fell short of the standards we set for ourselves when we began this journey in 2006. Our customers deserve better… I am grateful to the 12.3 crore customers who chose to fly with IndiGo during the financial year, for their patience, understanding, and continued trust during the disruption. At the same time, it is important to acknowledge the extraordinary professionalism, resilience, and sense of responsibility demonstrated by our frontline colleagues and operational teams in exceptionally demanding circumstances, their commitment and dignity under pressure truly reflects the spirit of IndiGo.”