India’s largest airline, IndiGo, reported a steep decline in profitability for the December quarter as large-scale flight disruptions and the implementation of new labour laws weighed heavily on earnings. Despite steady passenger growth and higher revenues, exceptional costs and regulatory penalties significantly impacted the airline’s bottom line.
InterGlobe Aviation, the parent company of IndiGo, on Thursday announced a 78 per cent year-on-year drop in net profit for the October–December quarter. The airline posted a profit of Rs 549.1 crore, sharply lower than Rs 2,448.8 crore reported in the same period last year.
According to the company, earnings were affected by major operational disruptions in early December and substantial provisions linked to the implementation of new labour laws.
IndiGo said it absorbed a total impact of Rs 1,546.5 crore during the third quarter. This included:
Rs 577.2 crore due to large-scale flight disruptions in early December
Rs 969.3 crore linked to provisions for implementing new labour laws
Additionally, the airline accounted for a Rs 22.2 crore penalty imposed by the Directorate General of Civil Aviation (DGCA), categorised under exceptional items.
Currency movements related to dollar-denominated future obligations also affected the airline’s finances. These forex-related impacts aggregated to Rs 1,035 crore during the December quarter, further pressuring profitability.
Despite profit headwinds, IndiGo recorded higher revenue during the quarter. InterGlobe Aviation reported a total income of Rs 24,540.6 crore, compared with Rs 22,992.8 crore in the corresponding quarter last year.
IndiGo CEO Pieter Elbers acknowledged the operational challenges but highlighted revenue growth, stating:
"Despite these operational disruptions, IndiGo delivered a topline of around 245 billion rupees in the December quarter, reflecting a growth of around 7 per cent with a reported profit of around 5 billion rupees and an underlying profit excluding exceptional items and forex of 31 billion rupees."
During the December quarter:
IndiGo carried nearly 32 million passengers
Total passengers flown in the last calendar year stood at around 124 million
At the end of the quarter, the airline operated a fleet of 440 aircraft, supporting its expanding domestic and international network.
According to the company release:
"Exceptional items for the quarter ended December 2025 were INR 15,465 million, including estimated provision towards implementation of new labour laws of INR 9,693 million, costs related to operational disruptions of INR 5,550 million and penalty of INR 222 million as per the DGCA order."
Between December 3 and 5, IndiGo faced major disruptions:
2,507 flights were cancelled
1,852 flights were delayed
Over 3 lakh passengers were impacted nationwide
Following the disruptions, the DGCA curtailed IndiGo’s winter schedule by 10 per cent until February 10.
On January 17, the regulator imposed fines totalling Rs 22.20 crore, warned CEO Pieter Elbers and two other senior executives, and directed the airline to submit a Rs 50 crore bank guarantee to ensure long-term corrective measures.
The DGCA said IndiGo has assured:
No flight cancellations after February 10, 2026
Adequate crew strength
Removal of two Flight Duty Time Limitations (FDTL) exemptions approved on December 6, 2025
This assurance is based on the airline’s currently approved network and operational capacity.
As of the end of December:
Total cash balance stood at Rs 51,606.9 crore
Rs 36,944.5 crore as free cash
Rs 14,662.4 crore as restricted cash
The company disclosed:
"The capitalised operating lease liability was Rs 524,784 million. The total debt (including the capitalised operating lease liability) was Rs 768,583 million."
Commenting on the road ahead, CEO Pieter Elbers said:
"Our long-term fundamentals remain strong, backed by our expanding fleet, growing domestic and international network."
Despite near-term challenges, IndiGo continues to focus on stabilising operations and strengthening its long-term growth strategy.