Daijiworld Media Network - New Delhi

New Delhi, May 30: InterGlobe Aviation, the parent company of IndiGo, reported a consolidated net loss of Rs 2,536.9 cr for the fourth quarter of FY26, citing foreign exchange losses, operational disruptions, lower yields and rising fuel costs.

The airline had posted a net profit of Rs 3,067.5 cr during the corresponding quarter of the previous financial year.

According to the company, profitability was significantly affected by continuing disruptions linked to the West Asia conflict and operational challenges during the quarter.

InterGlobe Aviation Managing Director Rahul Bhatia said FY26 was marked by an exceptionally challenging operating environment that materially impacted profitability.

“Despite these conditions, the underlying performance of the business remained resilient,” Bhatia said, adding that the airline's capacity grew by 9.5 per cent during the year while total income rose by more than 6 per cent. Excluding foreign exchange impacts and exceptional items, IndiGo recorded a profit of Rs 75 billion during the year, he added.

Passenger traffic during the January-March quarter fell 1.1 per cent year-on-year to 31.6 million. The airline's load factor also declined by 1.7 percentage points to 85.8 per cent, while yield dropped 2.2 per cent to Rs 5.20, indicating pressure on passenger revenues.

Despite the decline in traffic and yields, consolidated revenue from operations increased 1.3 per cent year-on-year to Rs 22,438.4 cr, compared to Rs 22,151.9 cr in the same quarter last year. Total income rose 3.2 per cent to Rs 23,830.7 cr from Rs 23,097.5 cr.

However, total expenses surged 30.1 per cent to Rs 25,932.5 cr, driven by higher non-fuel costs, labour-related provisions and foreign exchange losses.

The airline also reported exceptional items amounting to Rs 249.9 cr during the quarter, mainly due to additional provisions made under new labour laws.

InterGlobe Aviation stated that without the impact of foreign exchange fluctuations and exceptional items, the airline would have posted a net profit of Rs 1,920.6 cr during the quarter.

For the full financial year FY26, the company reported a consolidated net loss of Rs 2,393.6 cr, compared to a net profit of Rs 7,258.4 cr in FY25.

The airline attributed the annual loss to adverse foreign exchange movements, higher non-fuel expenses, labour-related provisioning, lower yields and continuing operational disruptions throughout the financial year.