IndiGo Reports Steep 78% Profit Decline in Q3 FY26 Amid Operational Challenges
New Delhi-based airline IndiGo witnessed a dramatic 78% plunge in its net profit for the third quarter of fiscal year 2026, dropping to Rs 549 crore from Rs 2,449 crore in the same period last year. This significant downturn occurred during a quarter marked by severe operational disruptions that affected thousands of passengers across the country.
CEO Attributes Profit Decline to Three Major Factors
IndiGo CEO Pieter Elbers, while apologizing for the widespread disruptions, identified three primary reasons behind the profit collapse. First, the impact of new labor laws cost the airline approximately Rs 1,000 crore. Second, operational issues contributed Rs 577 crore in losses. Third, the devaluation of the Indian rupee further eroded profitability margins.
Despite these substantial financial setbacks, IndiGo managed to achieve a 6.7% increase in total income, reaching Rs 24,541 crore in Q3 FY26 compared to Rs 22,993 crore in the corresponding quarter of the previous fiscal year.
Massive Flight Disruptions and Passenger Impact
The airline experienced particularly severe operational challenges during early December 2025. Between December 3-5, IndiGo cancelled 2,500 flights, affecting approximately 3.5 lakh passengers. According to government data, the airline cancelled about one-fourth of its scheduled 17,404 domestic flights between December 1-9, while international flight cancellations remained minimal at just over 2% of 2,702 scheduled flights.
Elbers noted that the airline managed to restore operations within days, returning to carrying 3.8 lakh passengers daily later in December. For calendar year 2025, IndiGo transported 12.4 crore passengers, representing a 9% increase over the previous year.
Regulatory Response and Schedule Reductions
Following the operational fiasco, the government mandated a 10% reduction in IndiGo's winter schedule, which will remain in effect until the last Saturday of March. The Directorate General of Civil Aviation (DGCA) has submitted its investigation report and taken some actions, though the airline continues its internal probe without yet taking action against any officials.
Elbers expressed ambition to not only return to pre-cut schedule levels but to grow further in coming times, stating, "We are ambitious of returning to not just that level but growing further in coming times."
Internal Challenges and Future Plans
The airline faces internal discontent among pilots, who cite punishing rosters and what they describe as "arrogance" from some senior management. IndiGo has not yet disclosed specific plans to address these concerns or outlined its pilot hiring strategy despite ongoing massive fleet expansion that sees a new aircraft joining every week.
Looking ahead, Elbers highlighted preparations for February operations when IndiGo's exemption from more humane pilot rostering norms expires, potentially increasing crew requirements. He emphasized that the airline's long-term plans remain unchanged, including the launch of Airbus A321 XLR international operations with flights to Athens starting Friday.
On the stock market front, IndiGo shares closed 1.1% higher at Rs 4,913.8 on the Bombay Stock Exchange on Thursday, outperforming the broader market's 0.5% gain.
