IndiGo’s Q3 profit plunged 78% despite rising revenue, hit by massive flight disruptions and new labour costs. With ₹1,500+ crore in one-time expenses, can India’s largest airline bounce back as demand stays strong?
IndiGo Q3 profit falls 78% on flight disruptions
New Delhi: IndiGo, India’s largest airline operated by InterGlobe Aviation Ltd, reported a steep 78% year-on-year fall in net profit for the third quarter ended December 31, 2025. The sharp decline came despite steady revenue growth, as the airline grappled with severe flight disruptions and higher costs linked to new labour codes.
According to a regulatory filing on Thursday, IndiGo posted a consolidated net profit of ₹550 crore, far below market expectations. Analysts tracked by Bloomberg had estimated a profit of nearly ₹1,997 crore for the quarter.
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The airline’s revenue rose 6.15% year-on-year to ₹23,472 crore, reflecting continued demand in the domestic and international travel markets. Operating performance remained relatively stable, with EBITDAR increasing 5.45% to ₹6,990 crore. However, the EBITDAR margin stayed flat at 30%, indicating limited operating leverage amid rising costs.
IndiGo attributed the sharp fall in profit primarily to exceptional, one-time expenses incurred during the quarter. These included ₹577 crore in costs due to flight disruptions in December 2025, when operational issues led to large-scale cancellations and delays.
In addition, the implementation of new labour codes resulted in a ₹969 crore impact, significantly adding to the airline’s cost burden and denting profitability.
Commenting on the results, IndiGo CEO Pieter Elbers said the airline faced major operational disruptions between December 3 and 5, leading to widespread flight cancellations and delays.
“We deeply regret the inconvenience faced by our customers and express our heartfelt gratitude for their patience and trust,” Elbers said, acknowledging the strain placed on passengers during the period.
Despite the challenges, IndiGo continued to carry a large number of passengers. The airline flew 3.2 crore passengers during the October–December quarter and 12.4 crore passengers in calendar year 2025, underlining its dominant position in India’s aviation market.
Elbers maintained an optimistic outlook, stating that the airline’s long-term fundamentals remain strong. He pointed to IndiGo’s expanding fleet, growing domestic and international network, and continued focus on reliability and customer experience as key growth drivers.
IndiGo shares rose 1.15% to ₹4,913.80 on the BSE on Thursday, even as the broader Sensex gained 0.49%. The airline announced its quarterly results after market hours, with investors appearing to factor in the one-time nature of the costs impacting earnings.
