IndiGo had a net loss of 2,582 crore rupees in the second quarter of the 2026 financial year. This loss is 161% higher than the 986 crore rupees loss recorded in the same quarter last year. The quarter was a slow time for travel, as demand for trips goes down after the summer ends.
The increase in losses was partly because of changes in currency values. The Chief Financial Officer, Gaurav Negi, said that 60% of the airline’s costs are in US dollars, including fuel and maintenance.The total income for the quarter ending September 2025 was ₹19,599 crore, which is 10.4% more than the same period last year. The total expenses for the quarter were ₹22,081 crore, which is 18.3% higher than the same quarter last year.
India’s largest airline, IndiGo, reported a net loss of ₹2,582 crore for the second quarter of FY2025, signaling turbulent skies for the aviation industry. This widening loss, compared to a profit of ₹188 crore in the same quarter last year, has raised concerns among investors and analysts alike.
The airline cited multiple challenges—rising fuel costs, forex losses, and grounded aircraft due to ongoing Pratt & Whitney engine issues—as the primary factors behind the steep decline in profitability. Despite strong passenger demand and higher revenues, mounting operational pressures weighed heavily on the airline’s bottom line.
The Numbers Behind the Loss
In the quarter ending September 2025 (Q2 FY2025), IndiGo posted a net loss of ₹2,582 crore, a sharp reversal from a profit of ₹188 crore a year earlier. The company’s total revenue from operations rose 15% year-on-year to around ₹16,400 crore, reflecting strong travel demand. However, surging expenses, particularly those related to aircraft leases, fuel, and maintenance, offset the revenue growth.
IndiGo’s total expenses increased nearly 30%, driven primarily by aviation turbine fuel (ATF) prices, which climbed due to geopolitical tensions and supply chain challenges. Additionally, forex losses arising from a weaker rupee inflated the airline’s lease liabilities and import costs.
In short, while the top line grew, the bottom line was severely hit. IndiGo’s EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) margin shrank significantly, highlighting reduced operational efficiency.
The contrast from previous quarters paints a stark picture: a strong summer travel season wasn’t enough to offset structural cost burdens.
Rising Costs and Operational Challenges
One of the key reasons behind IndiGo’s deepening losses is the sharp rise in operational costs. Jet fuel alone accounts for nearly 40% of an airline’s total expenses, and during Q2, ATF prices surged over 20% compared to the previous quarter. This spike had a direct and immediate impact on operating margins.
In addition, IndiGo continues to face higher lease rentals, as global lessors increased rates amid tighter aircraft supply. The depreciation of the rupee against the US dollar worsened the situation further, as a significant portion of IndiGo’s expenses—including leases, maintenance, and parts procurement—are dollar-denominated.
To make matters worse, IndiGo had to deal with Pratt & Whitney engine-related issues that forced dozens of aircraft to remain grounded. This reduced available seat kilometers (ASK) and pushed up unit costs since the airline was unable to fully utilize its capacity.
Even with passenger numbers increasing, cost pressures outpaced revenue growth, leading to the substantial net loss.
The Role of Engine Shortages
Perhaps the most significant operational hurdle IndiGo faces right now is the shortage of Pratt & Whitney engines. The global recall and maintenance issues with these engines have grounded more than 70 IndiGo aircraft—roughly 15% of its total fleet.
This reduction in active aircraft means fewer available seats, less capacity, and, ultimately, lower revenue potential. Meanwhile, IndiGo still bears the fixed costs of leases, salaries, and maintenance for grounded planes.
The situation is worsened by long waiting times for replacement engines due to global supply chain disruptions. Industry reports suggest these constraints may persist well into mid-2026.
For a carrier like IndiGo, which relies on high-frequency operations and quick turnaround times, having a significant portion of its fleet grounded is financially draining.
Despite these challenges, IndiGo has been working closely with Pratt & Whitney and regulatory authorities to expedite engine replacements and minimize disruptions. However, until the engine crisis stabilizes, cost pressures will remain elevated.
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