Gurugram: IndiGo reported a consolidated net loss of Rs 2,536 crore for the fourth quarter of FY26, reversing from a profit of Rs 3,067 crore in the corresponding period last year. The airline attributed the sharp decline in profitability to geopolitical disruptions in West Asia and significant foreign exchange volatility, despite recording stable revenue growth and continued operational expansion.

The results highlight the challenges faced by the aviation sector amid rising costs, route disruptions and currency fluctuations affecting airlines globally.

Revenue remains stable despite difficult environment

IndiGo reported revenue from operations of Rs 22,438 crore during the January-March quarter, registering a modest 1% year-on-year increase.

The airline said total income for FY26 rose 6.4% to Rs 89,513.4 crore as it continued expanding its network and capacity. During the financial year, available capacity increased by 9.5%, reflecting the carrier’s ongoing growth strategy despite industry headwinds.

Management noted that operational performance remained resilient even as external factors weighed heavily on profitability.

Passenger traffic and load factor decline

While capacity continued to expand, passenger traffic experienced a slight decline during the quarter.

IndiGo carried 31.6 million passengers in Q4 FY26, down 1.1% from the same period last year. Available Seat Kilometres (ASKs), a key industry measure of capacity, increased 3.4% year-on-year to 43.6 billion.

The airline’s load factor, which measures seat occupancy, declined by 1.7 percentage points to 85.8%. The lower occupancy levels indicate relatively softer demand compared to the previous year.

Yield, another important profitability indicator representing average revenue earned per passenger kilometre, fell 2% to Rs 5.2.

Operating margins come under pressure

The airline’s operating performance reflected the difficult business environment facing carriers worldwide.

EBITDAR excluding foreign exchange impact stood at Rs 6,435 crore, compared to Rs 6,862 crore in the corresponding quarter last year. EBITDAR margin narrowed to 28.7% from 31%.

On a reported basis, EBITDAR declined sharply to Rs 2,228 crore from Rs 6,948 crore a year earlier. Reported margins also contracted significantly to 9.9%.

The decline was largely attributed to foreign exchange losses and exceptional items affecting overall profitability.

Fuel savings offset by rising costs

Lower fuel expenses provided some support to the airline’s finances during the quarter.

Fuel cost per available seat kilometre declined 4.8% year-on-year to Rs 1.53. However, these savings were offset by increasing non-fuel operational expenses and foreign exchange-related costs.

Cost per available seat kilometre (CASK), excluding fuel and forex impacts, increased 7.3% to Rs 3.15, highlighting persistent cost pressures across the business.

Industry analysts note that airlines globally continue to face higher operating expenses due to supply chain challenges, maintenance costs and fluctuating currency markets.

Management cites challenging operating conditions

Managing Director Rahul Bhatia described FY26 as an exceptionally challenging year for the aviation industry.

He said geopolitical tensions in West Asia and prolonged forex volatility materially affected profitability, though the underlying business remained strong.

Bhatia also emphasised that the airline maintains a healthy balance sheet and strong liquidity position, enabling it to withstand periods of market uncertainty and operational disruptions.

IndiGo continues expansion

Despite the quarterly loss, IndiGo maintained its leadership position in the Indian aviation market and continued expanding its operations.

The airline carried 123 million passengers during FY26 and ended the financial year with a workforce of more than 69,000 employees.

Management indicated that long-term growth plans remain intact, supported by fleet expansion, network development and continued demand for air travel in India.

Conclusion

IndiGo’s fourth-quarter loss of Rs 2,536 crore reflects the significant impact of geopolitical tensions and foreign exchange volatility on airline profitability. While revenues remained stable and operations continued to grow, external challenges weighed heavily on earnings. The airline, however, remains confident in its long-term growth trajectory, backed by strong liquidity and market leadership.