IndiGo Blames Loss On Rupee And Geopolitics

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Delhi-based low-cost airline IndiGo has reported a net loss of Rs 23.96 billion for the year ending March as compared to a profit of Rs 72.58 billion previously, the airline reported on Friday.

The airline said that the “exceptionally sharp increase in the Indian Rupee against foreign currencies, change in labour laws and a challenging operating environment” offset the operational profit. The Indian Rupee has fallen by around seven percent against the US Dollar and is now trading at around Rs 96 to a US Dollar from Rs 85 earlier.

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The labour laws being referred to are the pilot operating norms, which India introduced late last year. The new norms offer more rest to the pilots, and IndiGo was forced to cancel flights as it did not have the required crew sets. In January this year, IndiGo was fined a record Rs 2.2 billion for cancelling flights. The challenging operating environment refers to the ongoing Gulf conflict and the closure of Pakistan airspace to Indian-registered aircraft, both of which are forcing Indian airlines to take longer flights on flights being operated West of India.

For the latest quarter, IndiGo reported that net profit excluding exceptional items and foreign exchange was at Rs 75.02 billion as compared to Rs 88.67 billion previously, while capacity increased by 9.5 per cent. Revenue from operations increased to Rs 84.61 billion, an increase of 5.1 percent.

Commenting on the latest results, Rahul Bhatia, Managing Director, said that despite the challenging environment, “the underlying performance of the business remained resilient”. The airline grew capacity by 9.5 percent while total income increased by over six percent. “We continue to maintain a strong balance sheet with substantial liquidity, demonstrating resilience through prolonged periods of volatility.”

Fourth quarter
For the quarter ended March 2026 as compared to the same period previously, the airline posted a net loss of Rs 25.36 billion as compared to a profit of Rs 30.67 billion. The net profit excluding the impact of exceptional items and foreign exchange stood at Rs 19.20 billion as compared to Rs 29.81 billion previously.

IndiGo reported that capacity increased by 3.4 percent to 43.6 billion available seat kilometres despite the disruption ongoing in the Gulf region. The airline reported that revenue from operations increased by 1.3 percent to Rs 234.38 billion.