InterGlobe Aviation swings to ₹238 crore Q1 loss as fuel costs rise 86%

InterGlobe Aviation Limited, the parents company of IndiGo, swung to a consolidated net loss attributable to owners of ₹237.6 crore in the quarter ended June 30, 2026, from a profit of ₹2,176.3 crore a year earlier. Aircraft fuel expenses rose 85.7 per cent, outpacing the 19.9 per cent increase in revenue from operations.

IndiGo revenue rises nearly 20 per cent

Revenue from operations increased to ₹24,584.1 crore from ₹20,496.3 crore in the year-ago quarter. Total income rose 18.9 per cent to ₹25,614.1 crore, while other income declined 1.6 per cent to ₹1,030 crore.

Total expenses climbed 34.4 per cent to ₹25,852.5 crore from ₹19,231.9 crore. Aircraft fuel expenses increased to ₹10,832.9 crore from ₹5,832.6 crore, a rise of ₹5,000.3 crore. By comparison, operating revenue increased by ₹4,087.8 crore.

Fuel costs represented 44.1 per cent of operating revenue, against 28.5 per cent a year earlier, an increase of 1,561 basis points.

West Asia developments raise fuel costs

The company attributed the increase in aviation turbine fuel prices to geopolitical developments in West Asia. A government mechanism capped prices for fuel supplied to domestic airlines for domestic operations at 25 per cent above the declared March 2026 prices from April 1 to June 8.

From June 9, InterGlobe Aviation recognised fuel expenses at prevailing market prices. The company said it was awaiting detailed guidelines on a subsequently announced Price Stabilisation Fund and had not decided whether to participate.

Supplementary rentals and aircraft repair and maintenance expenses rose 13.9 per cent to ₹3,497.5 crore. Employee benefit expenses increased 11.2 per cent to ₹2,279.3 crore, finance costs rose 12.1 per cent to ₹1,565.3 crore, and depreciation and amortisation increased 15.8 per cent to ₹2,970.2 crore.

Net margin contracts by 1,158 basis points

The group recorded a loss before tax of ₹238.4 crore, compared with a profit before tax of ₹2,310.7 crore a year earlier. Its net margin moved to negative 1.0 per cent from a positive 10.6 per cent, a contraction of 1,158 basis points.

Regulatory proceedings remain pending

The company said a Competition Commission of India investigation into its domestic operations, relating to December 2025 flight cancellations, remained pending. No provision was recognised. Bank guarantees of ₹50 crore ordered by the Directorate General of Civil Aviation for systematic reforms had been furnished in the preceding quarter.

The group disclosed a tax exposure of ₹2,418.5 crore, excluding interest and penalties, in case certain aircraft and engine acquisition incentives are held to be taxable. No provision was recognised based on legal advice.

Separately, cumulative integrated goods and services tax payments of ₹2,293.2 crore made under protest on re-imported repaired aircraft, engines and parts were treated as recoverable while related proceedings remained pending.