Indigo Profit Fall 78% on Dec Flight Disruptions, Labour Costs

 Mumbai: India's biggest airline, IndiGo, on Thursday reported a sharp fall of 78 per cent in December quarter net profit as massive flight cancellations (in December) and implementation of the new labour code besides currency movements related to dollar-denominated future obligations took a toll on its earnings.

The airline reported a net profit of Rs 549 crore in the October-December quarter, compared with Rs 2,449 crore earnings in the year-ago period.

The company in a statement said that it took a hit of Rs 1,546.5 crore in the third quarter. This included Rs 577.2 crore due to massive flight disruptions witnessed during early December and another Rs 969.3 crore on account of the implementation of new labour laws.

The airline faced one of its worst flight disruptions, resulting in approximately cancellation of 2,507 flights between December 3 and 5 triggered by stricter Flight Duty Time Limitation (FDTL) rules for pilots. Another 1,852 flights were delayed, impacting over 3 lakh passengers at airports across the country, the regulator said in a statement on January 20.

IndiGo was slapped with a fine of Rs 22.2 crore for the flight disruptions, which it has accounted for in exceptional items. Currency movement related to dollar-based future obligations aggregated to Rs 1,035 crore in the December quarter.

“The DGCA has also directed the Company to furnish a bank guarantee of Rs 50 crore under the IndiGo Systemic Reform Assurance Scheme (‘ISRAS’). The release of bank guarantee is, inphased manner, subject to DGCA’s verification as prescribed under the scheme,” Indigo said in its Q3 release.

Pieter Elbers, CEO of Indigo said, “Despite these operational disruptions, IndiGo delivered a topline of around 245 billion rupees in the December quarter, reflecting a growth of around 7 per cent with a reported profit of around 5 billion rupees and an underlying profit excluding exceptional items and forex of 31 billion rupees.”

“Our long-term fundamentals remain strong, backed by our expanding fleet, growing domestic and international network. As we look ahead, we remain committed to reliability, operational excellence and enhanced customer experience,” he added.

Looking ahead, the airline expects aircraft capacity additions to moderate to about 10 per cent, down from the 19 per cent, as deliveries have been aligned with a reduced flight schedule following a 10 per cent cut imposed by the DGCA, resulting in 200 fewer flights.

The company’s consolidated profit in Q3 FY25 was Rs 2,448 crore. In Q2FY26, Indigo had reported a loss of Rs 2,582 crore.

Despite a dip in profit, IndiGo's core business continued to grow in the third quarter. Passenger ticket revenues rose 6 per cent YoY to Rs 20,464 crore, while ancillary revenues -- including fees for baggage, seat selection and other services rose 13.6 per cent to Rs 2,446 crore.

In the December quarter, the airline carried nearly 32 million passengers, and the total number of passengers flown last year stood at around 124 million. The airline's fleet had 440 planes at the end of the December quarter.

On January 17, DGCA announced slapping fines totalling Rs 22.20 crore for the December flight disruptions, and had also warned CEO Pieter Elbers and two other senior executives for the lapses. It also directed the airline to furnish a bank guarantee of Rs 50 crore to ensure long-term systemic corrections. The DGCA also curtailed the airline's winter schedule by 10 per cent until February 10.

IndiGo has assured operational stability and no flight cancellations after February 10, 2026, based on the current approved network, above crew strength, and the removal of the two FDTL (Flight Duty Time Limitations) exemptions approved on December 6, 2025, according to the DGCA statement issued on January 20.