IndiGo has deferred annual salary increments for senior employees after reporting a consolidated net loss of ₹237.6 crore for the quarter ended June 30, 2026 (Q1 FY27), the airline’s management said during its post-results analyst call on July 23.
Revenue from operations rose 19.9% year-on-year to ₹24,584.1 crore, but total expenses climbed 34.4% to ₹25,852.5 crore, driven by an 85.7% jump in fuel costs. IndiGo had posted a profit of ₹2,176.3 crore in the same quarter last year, though the loss narrowed sequentially from ₹2,536.3 crore in Q4 FY26.
“There was again a deferment related to increments that were to be given to senior management employees,” said Chief Financial Officer Gaurav Negi, adding, “We’ll continue to review the situation after six months.”
Negi said the airline would keep raising fares where demand allows to offset elevated costs, noting that fuel prices had been expected to moderate before renewed tensions in West Asia reversed the trend. IndiGo expects capacity for the September quarter to stay flattish year-on-year as it enters a seasonally weaker period, while passenger unit revenue is projected to grow more than 25% from a year earlier.
Fuel costs per available seat kilometre jumped roughly 80% year-on-year, driven by airspace disruptions and route cancellations linked to the West Asia conflict, alongside the recent expiry of a government cap on domestic fuel price increases. IndiGo said services to the region had recovered to more than 90% of pre-conflict capacity after falling sharply at the peak of the disruption.
Despite the quarterly setback, the airline reaffirmed its long-term expansion plans, including a large engine order and a target of 40% international capacity by 2030.
