IndiGo Posts Second Straight Quarterly Loss

India’s largest airline, IndiGo, reported its second consecutive quarterly loss as rising fuel prices and uncertainty linked to the Middle East conflict increased operating costs. The airline also forecast broadly flat capacity growth for the July–September quarter, indicating a cautious outlook despite continued demand for air travel.

For the quarter ended June 30, IndiGo posted a net loss of ₹3.82 billion, compared with a profit of ₹21.61 billion a year earlier. While revenue increased 20%, total expenses surged 35.1%, driven by an 86% jump in fuel costs. The airline said higher jet fuel prices and the depreciation of the rupee significantly impacted profitability.

Managing Director Rahul Bhatia said fuel costs and the weaker rupee together added around ₹2 billion to the company’s losses during the quarter. With more than 60% of IndiGo’s expenses linked directly or indirectly to the U.S. dollar, currency fluctuations continue to pressure the airline’s finances. Shares of the company closed lower ahead of the earnings announcement.

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