Interglobe Aviation , operating as IndiGo, India's leading airline, has commenced construction on a state-of-the-art Maintenance, Repair, and Overhaul (MRO) facility at Kempegowda International Airport in Bengaluru. This strategic move marks a significant step in the carrier's expansion and operational efficiency plans.

Project Details

The new MRO facility, sprawling across 31 acres, is designed to accommodate up to 12 aircraft bays, capable of servicing both narrow-body and wide-body aircraft. This ambitious project is expected to be fully operational by 2028, positioning IndiGo at the forefront of aircraft maintenance capabilities in the region.

Capacity and Scale

Once completed, the Bengaluru MRO facility will be three times larger than IndiGo's combined existing MRO facilities in Delhi and Nagpur. This substantial increase in capacity aligns with the airline's growing fleet, which currently comprises more than 400 aircraft.

Economic Impact

The project is set to create over a thousand jobs for engineers, technicians, and other skilled professionals, contributing significantly to the local economy and India's aviation sector.

Strategic Importance

Pieter Elbers, CEO of IndiGo, emphasized the strategic importance of this facility during the groundbreaking ceremony. The new MRO is expected to enhance aircraft availability, improve cost efficiencies, and reduce turnaround times for the airline's expanding operations.

Collaboration with Local Authorities

The groundbreaking ceremony was attended by key figures, including Karnataka Government's Commissioner for Industries, Gunjan Krishna, and BIAL CEO Hari Marar, underscoring the project's importance to the state's industrial development.

Future Outlook

This development comes as IndiGo continues to strengthen its position in the Indian aviation market. The airline's focus on building owned assets, as evidenced by its shift towards finance leases for aircraft acquisition, aligns with its long-term strategy of vertical integration and cost optimization.

IndiGo's investment in this MRO facility demonstrates its commitment to enhancing operational efficiency and maintaining its competitive edge in the rapidly growing Indian aviation sector. As the facility becomes operational, it is expected to play a crucial role in supporting IndiGo's ambitious growth plans and reinforcing its position as a leader in the Indian skies.

Interglobe Aviation , the parent company of IndiGo, has reported a resilient performance for the first quarter of fiscal year 2026, demonstrating its ability to navigate through challenging external conditions.

Financial Highlights

IndiGo posted a net profit of Rs 2,180.00 crore for the quarter ended June 30, 2025, with a profit margin of 10.60%. This compares to a net profit of Rs 2,730.00 crore in the same period last year. The company's total income increased by 6.00% year-over-year to Rs 21,500.00 crore.

Passenger Growth and Market Share

Despite industry-wide challenges, IndiGo served over 31 million customers during the quarter, reflecting a robust 12.00% growth compared to the same period last year. This growth rate was double the industry average of 6.00%, underlining IndiGo's strong market position.

Operational Performance

The airline's passenger unit revenue (PRASK) declined by 7.00% to Rs 4.21, while load factors dropped by 2 percentage points to 85.00%. However, IndiGo maintained its leadership in on-time performance since November last year and continues to have one of the highest technical dispatch reliabilities in the industry.

External Challenges

The quarter was impacted by several external factors:

• Geopolitical tensions and airspace restrictions
• The AI171 accident, which affected travel sentiment
• Various flight cancellations due to NOTAMs and conflicts in the Middle East

International Expansion

IndiGo has made significant strides in its international operations:

• Launched direct flights to Amsterdam and Manchester using widebody aircraft from Norse Atlantic
• Plans to add London and Copenhagen to its network
• Converted 30 purchase rights into firm orders with Airbus for additional widebody aircraft

Future Outlook

For Q2 FY26, IndiGo expects:

• Mid-to-high single-digit capacity growth
• Similar passenger unit revenues compared to the previous year

The company maintains its full-year guidance of early double-digit capacity addition.

Management Commentary

Pieter Elbers, CEO of IndiGo, stated, "The steps we have recently announced demonstrate our conviction in the long-term growth story of Indian aviation. We remain very confident of a strong rebound and robust growth in the third and fourth quarter."

IndiGo's performance in Q1 FY26 showcases its resilience and adaptability in the face of industry headwinds. The airline's focus on network expansion, cost leadership, and operational efficiency positions it well for future growth in the dynamic Indian aviation market.