IndiGo Q2 Results: Loss narrows YoY to Rs 1,879 crore; revenue rises 26%

Budget airline IndiGo reported narrowing of its consolidated loss to Rs 1,879 crore in the second quarter of FY27, compared with Rs 2,582 crore in the year-ago quarter. However, the loss widened from Rs 237 crore posted in the preceding June quarter.

Revenue from operations, meanwhile, surged 26% year-on-year (YoY) to Rs 23,364 crore.

Profitability remained under pressure from elevated fuel costs and rupee depreciation. Excluding the impact of foreign exchange movements, IndiGo reported a loss of Rs 724 crore, compared with a profit of Rs 104 crore in the year-ago quarter.


The airline's EBITDAR, or earnings before interest, tax, depreciation, amortisation and aircraft rentals, stood at Rs 2,460 crore, compared with Rs 1,114 crore a year earlier. Excluding foreign exchange impacts, EBITDAR declined 4.9% to Rs 3,615 crore from Rs 3,800 crore, while the corresponding margin contracted to 15.5% from 20.5%.

Fuel costs surge

IndiGo's fuel expenses jumped 67% year-on-year (YoY) to Rs 9,967 crore from Rs 5,962 crore, reflecting the impact of elevated global aviation fuel prices. Fuel cost per available seat kilometre (CASK) increased 68.9% to Rs 2.44.

Costs excluding fuel and foreign exchange movements also rose, with the airline reporting a 14.6% increase in CASK excluding these items to Rs 3.45.

The company's overall cost per available seat kilometre increased 20.6% to Rs 6.22 from Rs 5.16 a year earlier.

"The seasonally soft September quarter saw exceptionally elevated fuel costs and continued geopolitical turmoil," said IndiGo CEO Willie Walsh. He added that the airline responded by reducing capacity and improving yields, helping partially offset the higher operating costs.

IndiGo reported a 34% YoY increase in passenger yield to Rs 6.3 per kilometre from Rs 4.69, reflecting higher average ticket realisations. Passenger ticket revenue increased 29% to Rs 20,652 crore, while ancillary revenue rose 15.9% to Rs 2,481 crore.

However, the airline carried fewer passengers during the quarter. Passenger traffic declined 5% to 2.75 crore from 2.88 crore in the corresponding period last year.

Capacity, measured in available seat kilometres, declined 1% to 40.8 billion, reflecting the airline's decision to moderate capacity amid higher operating costs. The passenger load factor slipped to 80.3% from 82.5% a year earlier, indicating a decline in the proportion of available seats occupied.

Revenue per available seat kilometre (RASK), however, increased 26.4% to Rs 5.76 from Rs 4.55, supported by stronger ticket pricing.

The improvement in passenger yields helped IndiGo maintain revenue growth despite the reduction in capacity and passenger volumes.

IndiGo continued expanding its fleet during the September quarter, adding a net 10 passenger aircraft. The airline operated 442 aircraft as of September 30, comprising 26 Airbus A320ceos, 174 A320neos, 186 A321neos, four A321XLRs, 44 ATRs, three A321 freighters and five Boeing 787 aircraft under damp-lease arrangements.

IndiGo operated a peak of 2,020 daily flights during the quarter, including non-scheduled services. Its network covered 97 domestic destinations and 36 international destinations.

The airline reported an on-time performance of 91.3% across 10 major airports, while its flight cancellation rate stood at 0.35%.

Cash balance

IndiGo reported a total cash balance of Rs 52,685 crore as of September 30, comprising free cash of Rs 39,929 crore and restricted cash of Rs 12,756 crore. Its total debt, including capitalised operating lease liabilities, stood at Rs 87,303 crore.

Looking ahead, IndiGo expects capacity growth to return in the December quarter. The airline guided for an increase in available seat kilometres in the early single digits during Q3 FY27 compared with the corresponding period last year.

Walsh said the airline remains focused on cost management and disciplined expansion amid continued uncertainty in fuel prices and the geopolitical environment.