InterGlobe Aviation Limited, operating as IndiGo, announced its financial results for the second quarter of the fiscal year 2027, revealing a mixed performance marked by strong revenue growth but a significant net loss. The airline reported a 25.9% increase in revenue from operations, reaching INR 233,638 million for the quarter ending 30th September 2026. This growth was supported by a 34.3% increase in yield to INR 6.30, despite a 1% reduction in capacity and a 4.7% decrease in passenger numbers to 27.5 million.
However, IndiGo faced substantial challenges due to elevated fuel costs and the depreciation of the Indian rupee, which significantly impacted its profitability. The fuel cost alone surged by 67.2% to INR 99,668 million, contributing to a total expense increase of 18.6% over the previous year. Consequently, the airline reported a net loss of INR 18,791 million, an improvement from the INR 25,821 million loss in the same quarter the previous year, but still a considerable financial setback.
Despite the adverse cost environment, IndiGo’s management, led by CEO Willie Walsh, remained focused on strategic measures to mitigate these challenges. The airline implemented prudent capacity reductions and yield management strategies, which bolstered revenue performance. Nonetheless, these efforts only partially offset the higher operational costs, resulting in a net loss excluding foreign exchange of INR 7,237 million, compared to a net profit of INR 1,039 million in the same quarter last year.
Looking ahead, IndiGo plans to continue its disciplined approach to capacity management and cost control while investing in future growth. The airline’s fleet expanded to 442 aircraft, and it operated a peak of 2,020 daily flights during the quarter. With a focus on maintaining safe and reliable operations, IndiGo remains optimistic about India’s long-term aviation prospects, despite the current economic challenges. Market analysts suggest that while the airline’s revenue growth is promising, sustained profitability will depend on stabilising fuel costs and currency exchange rates in the coming quarters.
