IndiGo Q1 Results: Profit Down 21% Despite Revenue Growth

InterGlobe Aviation, the operator of India’s largest airline IndiGo, reported its Q1FY26 results on July 30. The airline posted a net profit of ₹2,161 crore, a 21% drop compared to ₹2,727 crore in the same period last year. This fall comes despite a 5% year-on-year increase in operational revenue, which stood at ₹20,496 crore, up from ₹19,571 crore in Q1FY25.

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Revenue Up, But Operational Challenges Persist

IndiGo’s revenue growth was largely driven by strong domestic air travel demand, which has remained steady for six consecutive quarters. The airline carried 270.25 lakh domestic passengers in the June 2025 quarter — a 10.15% increase from the same period last year. This translated to a market share of 64.4%, up from 61% in Q1FY25.

Overall, India’s air passenger traffic rose 4.4% year-on-year in Q1FY26, totaling 419.76 lakh passengers during the quarter.

Pakistan Airspace Closure Impacts Profitability

Despite the revenue growth, IndiGo’s profitability was hit due to increased operational costs. A key factor was the closure of Pakistani airspace, which began on April 24, 2025, following the terrorist attack on tourists at Pahalgam on April 22.

The airspace ban, which has been extended till August 24, disrupted over 600 west-bound flights of Indian carriers, especially IndiGo and Air India. These flights had to be rerouted via Mumbai and Ahmedabad, and many required extra refueling stops, raising fuel and operational costs significantly.

Fuel Price Trend Offers Some Relief

Interestingly, aviation turbine fuel (ATF) prices saw a year-on-year decline during the quarter:

• April 2025: ₹89,441.18/kl, down 11.4% YoY

• May 2025: ₹85,486.8/kl, down 15.9% YoY

• June 2025: ₹83,072.55/kl, down from ₹94,969.01/kl last year

Despite this, the added cost from detours and airspace diversions offset the benefit of lower fuel prices.

Quick Take

While IndiGo continues to retain market dominance and has shown steady revenue growth, external geopolitical factors and operational disruptions have put pressure on its bottom line. The impact of airspace restrictions remains a key risk in the upcoming quarters.

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