India’s largest airline, IndiGo, has reported a net loss of INR 2,537 crore for the fourth quarter of FY2026, compared to a profit of INR 3,067 crore during the same period last year. The airline stated that rising fuel costs, currency depreciation, and operational challenges significantly affected its financial performance.
The carrier warned that increases in aviation fuel prices are likely to be passed on to both domestic and international passengers through higher airfares. While jet fuel prices for international operations have more than doubled since pre-war levels, domestic fuel price increases have so far remained partially capped. Any relaxation of these controls could result in higher ticket prices for domestic travellers as well.
After recording profits for two consecutive years, IndiGo ended FY2026 with a loss of INR 2,394 crore, compared to a profit of INR 7,258 crore in FY2025. The airline attributed the decline to sharp depreciation of the Indian rupee, changes in labour regulations, airspace restrictions, and elevated fuel prices that increased operating expenses throughout the year.
According to Managing Director Rahul Bhatia, the airline suffered a financial impact of INR 8,100 crore due to currency depreciation during FY2026, including INR 4,200 crore in the fourth quarter alone. Additional costs included INR 580 crore from operational disruptions in December and around INR 1,200 crore linked to labour law changes.
Despite the losses, the airline highlighted that its core business remained resilient. Capacity grew by 9.5% during the year, while total income increased by more than 6 per cent. Excluding foreign exchange losses and exceptional items, IndiGo said it would have reported a profit of approximately INR 7,500 crore. As of March 31, 2026, the airline held cash reserves of INR 51,650.6 crore against total debt of INR 77,749.2 crore.
Looking ahead, IndiGo plans to selectively reduce capacity on certain routes as travel demand softens from mid-June and fuel prices remain elevated. The airline is also evaluating fuel hedging strategies to manage volatility. Rahul Bhatia reaffirmed the company’s focus on cost efficiency, operational discipline, and long-term value creation while navigating a challenging aviation environment.