India's IndiGo forecasts largely flat Q2 capacity growth after second straight loss (updated)

Interglobe Aviation

23/07/2026 11:26

IndiGo posts second straight quarterly loss
Airline forecasts Q2 capacity growth to be little changed
Expenses surge over 35%, outpacing revenue growth
Fuel costs jump nearly 86% 
Adds company executive comments in paragraphs 4,5,11
By Kashish Tandon

    July 23 (Reuters) - India's largest airline IndiGo INGL.NS forecast largely flat capacity growth for the current quarter after posting a second consecutive quarterly loss on Thursday, driven by soaring fuel prices and uncertainty from the Middle East conflict.
Margins of airlines such as IndiGo, which do not hedge fuel costs, have been squeezed by a surge in jet fuel prices after the Iran conflict pushed crude oil prices above $100 a barrel during the quarter.
"On the cost side, fuel remains the largest source of pressure during the quarter... global fuel markets continue to be influenced by developments in the Middle East, resulting in significant volatility," Chief Financial Officer Gaurav Negi said on a post-earnings call.
Negi said the airline was looking to optimise costs by deploying more fuel-efficient aircraft wherever commercially feasible. IndiGo has also curtailed discretionary spending and deferred salary increments for senior-level employees, he added.
The company's total expenses rose 35.1%, outpacing a 20% increase in revenue during the quarter. Fuel costs jumped nearly 86% to 108.3 billion rupees.
The carrier said it expects capacity, measured in available seat kilometres, to remain broadly unchanged in the July-September quarter compared with last year.
The results come as former British Airways chief Willie Walsh is set to take over as IndiGo's CEO by August 3.
InterGlobe Aviation, which operates IndiGo, reported a standalone net loss of 3.82 billion rupees ($44 million) for the quarter ended June 30, compared with a profit of 21.61 billion rupees a year earlier.

    On a consolidated basis, it reported a net loss of 2.38 billion rupees from a profit of 21.76 billion rupees last year. 
A weaker rupee also inflated costs for the budget carrier, with more than 60% of its expenses directly or indirectly linked to the U.S. dollar. The pressure of fuel costs and the rupee depreciation resulted in a loss of around 2 billion rupees, Managing Director Rahul Bhatia said. 
Separately, Bhatia also commented on reports that airport operators are seeking a policy change to allow them to own airlines.
"If the news has any merit, it has no global precedence because it typically would reflect a massive conflict of interest and, over a period of time, would be against the interests of consumers," Bhatia said on the post-earnings call. 
InterGlobe shares are down 0.7% so far this year, compared with an 8.7% drop in the benchmark Nifty 50 .NSEI. 

($1 = 96.5450 Indian rupees)
     

 (Reporting by Kashish Tandon in Bengaluru; Editing by Abinaya V, Sonia Cheema and Leroy Leo)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))