Interglobe Aviation , which operates IndiGo, India's leading airline, has reported a 20% decrease in profit for the June quarter, despite carrying more passengers. The company's CEO, Pieter Elbers, also warned of potential increases in aircraft insurance premiums due to global factors.

Financial Performance

IndiGo's net profit for the quarter ended June 30 stood at ₹2,176.30 crore, down from ₹2,728.80 crore in the same period last year. This decline came despite a 12% increase in passenger volume, highlighting the challenges faced by the aviation sector.

Key financial highlights for the quarter include:

Operational Performance

Despite the profit decline, IndiGo demonstrated strong operational growth:

• Capacity increased by 16.4% to 42.3 billion Available Seat Kilometers (ASKs)
• Passenger load factor was 84.6%, down 2.1 percentage points from the previous year
• The airline served 91 domestic and 41 international destinations during the quarter

Rising Insurance Costs

CEO Pieter Elbers highlighted concerns about increasing aircraft insurance premiums. He attributed this trend to several factors:

1. Geopolitical tensions
2. Inflationary pressures
3. Recent accidents in the aviation industry

Elbers noted that insurers operate globally and consider worldwide industry incidents when setting rates. The airline, which operates over 400 aircraft with an expanding fleet, is currently in discussions to finalize insurance premiums.

Fleet and Maintenance Update

IndiGo reported improvements in its Aircraft on Ground (AOG) situation:

• Reduced grounded aircraft from over 70 to the 40s range
• Progress primarily due to addressing previous Pratt & Whitney engine issues

Future Outlook

While acknowledging the challenges, Elbers remained optimistic about the growth of air travel. He stated, "Looking forward, we remain optimistic about the growth of air travel and with our scale, network and fit for purpose fleet, we remain committed to serve the growing demand."

The airline expects capacity growth in the mid to high single digits for the next quarter compared to the same period last year.

Industry Challenges

IndiGo's financial results reflect broader challenges in the aviation sector, including:

• A challenging operating environment
• Geopolitical tensions
• Airspace restrictions
• Recent accidents in the Indian aviation sector

Despite these headwinds, the airline's passenger volumes demonstrated resilient demand, growing by approximately 12% year-over-year.

As IndiGo navigates these challenges, the company continues to focus on expanding its network and maintaining its position as a leading player in the Indian aviation market.

Interglobe Aviation , the parent company of IndiGo, India's largest airline, has reaffirmed its optimistic growth projections for the fiscal year 2026 (FY26) while introducing new passenger amenities on select routes. The company's recent financial results and strategic initiatives highlight its commitment to expansion and enhanced customer experience in a competitive aviation market.

Robust Capacity Growth Projections

IndiGo continues to maintain its guidance for early double-digit capacity growth for the full year FY26. This ambitious target underscores the airline's confidence in the Indian aviation market's recovery and growth potential. The company expects a strong rebound in growth during the third and fourth quarters of FY26, indicating a positive outlook for the latter half of the fiscal year.

Near-Term Outlook

For the second quarter of FY26, IndiGo anticipates capacity growth in the mid to high single digits compared to the same period last year. This projection suggests a steady expansion of the airline's operations in the short term. Additionally, the company expects passenger unit revenues to remain similar to the previous year, indicating stable revenue performance despite the capacity increase.

Enhanced Passenger Experience on European Routes

In a move to bolster its competitive edge and improve passenger satisfaction, IndiGo has introduced complimentary hot meals and beverages from Indian brands on its new European routes. This initiative aims to enhance the in-flight experience for long-haul passengers and showcase Indian culinary offerings to international travelers.

Cost Management

IndiGo's management remains focused on cost efficiency. The cost per available seat kilometer (CASK), excluding fuel and foreign exchange impacts, for FY26 is expected to remain at similar levels as FY25. This projection demonstrates the airline's commitment to maintaining operational efficiency while pursuing growth.

Financial Performance Highlights

The company's financial results for the quarter ended June 30, 2025, reflect its strong market position:

Network Expansion and Fleet Update

As of June 30, 2025, IndiGo's fleet comprised 416 aircraft, including a mix of A320 family aircraft, ATRs, and leased Boeing aircraft. The airline provided scheduled services to 91 domestic and 41 international destinations during the quarter, operating at a peak of 2,269 daily flights.

Management Commentary

Pieter Elbers, CEO of IndiGo, commented on the quarter's performance: "Despite these industry-wide disruptions, we reported a net profit of ₹21,763.00 million with a net profit margin of around 11% for the quarter ended June 2025. While the revenue environment saw moderation, demand for air travel held strong as we served more than 31 million passengers during the quarter, reflecting a growth of around 12 percent on a year-over-year basis."

IndiGo's strategic focus on capacity growth, cost management, and enhanced passenger experience positions the airline to capitalize on the recovering aviation market. As the company continues to expand its network and improve its services, it remains a key player in India's growing air travel sector.