IndiGo Reports Lower Q1 Profit Amid Airspace Restrictions, Capacity Growth

IndiGo, India's largest airline, reported a decline in net profit to approximately Rs 21.7 billion for the first quarter of FY26, down from Rs 27.3 billion the previous year, impacted by external challenges including border tensions between India and Pakistan, increased foreign exchange losses, and travel disruptions from a terrorist attack and military operations in northern India. Despite these headwinds, the airline achieved a 16.4% increase in capacity and a 10% growth in domestic passenger numbers, raising its market share to 64.4%. Revenues rose modestly by around 4.7% due to softer demand and booking cancellations, with yields dropping 5% amidst rerouted flights and airport closures. The tragic Air India crash and ensuing flying anxiety also contributed to sector-wide challenges during the quarter. IndiGo's management will discuss these results and outlook in a public earnings call scheduled for July 30, following the official release of their financial statements. Overall, while profit dipped, IndiGo demonstrated resilience through expanded capacity and passenger growth despite a difficult geopolitical and operational environment.