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IndiGo Q3 Profit Plummets 78% Amid Flight Chaos & New Labour Laws

InterGlobe Aviation reported a steep 78% decline in consolidated net profit for the October-December quarter. The results were severely impacted by major operational disruptions in early December, which led to thousands of flight cancellations and delays. The company also booked significant provisions for implementing new labour codes and paid a penalty imposed by aviation regulator DGCA. Despite the setbacks, the CEO highlighted underlying profitability and revenue growth, asserting the airline's long-term fundamentals remain strong.

Key Points: IndiGo Q3 Profit Drops 78% Due to Flight Disruptions

  • 78% profit drop in Q3
  • Massive Dec flight disruptions & DGCA penalty
  • Rs 15,465M in exceptional items
  • Underlying business fundamentals remain strong
2 min read

IndiGo's net profit nosedives about 78 pc in Q3 over flight disruptions, new Labour Codes

IndiGo's net profit fell 78% in Q3, hit by massive flight cancellations, a DGCA penalty, and provisions for new labour codes.

"We deeply regret the inconvenience faced by our customers - Pieter Elbers"

New Delhi, Jan 22

InterGlobe Aviation, the parent company of IndiGo, on Thursday registered a consolidated net profit of Rs 549.8 crore for the October-December period - a sharp about 78 per cent drop from the Rs 2,448.8 net profit reported in the same period of the previous fiscal.

The low-cost airline said in its exchange filing that net profit was impacted by significant operational disruption in early December as well as new Labour Codes.

"Exceptional items for the quarter ended December 2025 were Rs 15,465 million, include estimated provision towards implementation of new labour laws of Rs 9,693 million, costs related to operational disruptions of Rs 5,550 million and penalty of Rs 222 million as per the DGCA order," the company informed.

IndiGo CEO Pieter Elbers said that this quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from December 3-5.

"We deeply regret the inconvenience faced by our customers and express our heartfelt gratitude for their patience and trust," he said.

Aviation regulator, the Directorate General of Civil Aviation (DGCA), imposed a penalty of Rs 22.20 crore on airline IndiGo for large-scale flight disruptions witnessed in December 2025. According to the regulator, IndiGo cancelled 2,507 flights and delayed 1,852 flights between December 3 and 5, leaving more than three lakh passengers stranded at airports across the country.

The disruptions caused widespread inconvenience and raised serious concerns about the airline's operational preparedness.

Despite these operational disruptions, IndiGo delivered "a topline of around Rs 245 billion in the December quarter, reflecting a growth of around 7 per cent with a reported profit of around Rs 5 billion and an underlying profit excluding exceptional items and forex of Rs 31 billion," said Elbers, adding that the long-term fundamentals remain strong.

For the quarter, the passenger ticket revenues were Rs 204,640 million, an increase of 6.2 per cent and ancillary revenues were Rs 24,462 million, an increase of 13.6 per cent compared to the same period last year.

Total expenses for the quarter ended December 2025 were Rs 224,319 million, an increase of 9.6 per cent over the same quarter last year, according to the filing.

- IANS

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Reader Comments

P
Priya S
While the disruption was terrible, we must acknowledge that implementing new Labour Codes is a one-time cost that should benefit employees in the long run. Better pay and conditions for ground staff and crew will hopefully lead to better service. The underlying profit excluding exceptional items looks healthy.
A
Aman W
This is what happens when you focus only on being a low-cost carrier. Cost-cutting on essential operational resilience and manpower training. DGCA's penalty is fully justified. Hope other airlines learn from this.
S
Sarah B
The passenger growth and ancillary revenue increase show people are still flying. India's aviation market is booming. This quarter is a blip, but they must fix their operational issues before the next holiday season.
K
Karthik V
Heartfelt gratitude from the CEO won't compensate for the hotel and food bills we had to pay when stranded. They should have announced a proper compensation scheme immediately, not just an apology. Customer trust is earned by actions.
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Nikhil C
The silver lining is the 13.6% growth in ancillary revenues. Shows Indians are willing to pay for seats, meals, and extra baggage. IndiGo's business model is strong, but execution failed badly this time. Hope they've learned their lesson.

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