IndiGo Faces Turbulent Quarter with 20% Profit Drop

IndiGo, India's leading airline, reported a significant 20% drop in its Q1 FY 2026 profits, falling to Rs 2,176.3 crore from Rs 2,728.8 crore in the same period last year. The decline is attributed to the severe impact on travel due to the India-Pakistan war, the closure of 32 airports across north, west, and central India, and ongoing airspace restrictions.

Passenger Numbers Rise Despite Challenges

Despite these hurdles, IndiGo saw an 11.6% increase in passenger numbers, serving 3.1 crore passengers compared to 2.8 crore in Q1 FY 25. CEO Pieter Elbers highlighted the airline's resilience, noting a net profit margin of around 11% for the quarter ended June 2025.

Financial Overview

The airline's total income rose by 6.4% to Rs 21,542.6 crore, while total costs increased by 10.2% to Rs 19,231.9 crore. IndiGo's scrip closed 0.26% lower at Rs 5,739.9 on BSE Wednesday, against a broader market uptick of 0.18%.

Looking Ahead

Elbers remains optimistic about the future, citing the airline's scale, network, and fleet as key strengths to meet growing demand. With a total cash balance of Rs 49,405.7 crore and a fleet of 416 planes, IndiGo is poised to navigate the challenges ahead.