‘No Choice But To Increase Fares’: IndiGo CEO Warns Of More Ticket Price Hikes

IndiGo CEO Willie Walsh has warned that the airline may have to raise fares further to offset rising fuel costs, after the carrier reported a consolidated net loss of ₹1,879.1 crore for the July-September quarter of 2026-27.

The airline's loss narrowed 27.2% from ₹2,582.1 crore in the corresponding quarter last year, marking its third consecutive quarterly loss. Revenue from operations rose 25.9% year-on-year to ₹23,363.8 crore, while fuel expenditure climbed 67.2% to ₹9,966.8 crore from ₹5,961.8 crore a year earlier. Higher fuel prices, geopolitical uncertainty and the depreciation of the rupee weighed on its financial performance.

The loss also widened sharply from ₹238 crore in the April-June quarter. The year-on-year improvement in the reported result came partly as foreign-exchange losses fell to ₹1,333.2 crore from ₹2,892.1 crore a year earlier. Excluding foreign-exchange effects, IndiGo reported a loss of ₹723.7 crore, compared with a profit of ₹103.9 crore in the corresponding quarter last year.

Higher Fuel Costs Put Pressure On IndiGo's Finances

In a statement accompanying the results, Walsh said, “The seasonally soft September quarter saw exceptionally elevated fuel costs and continued geopolitical turmoil.”

“We have no choice but to look to increase fares in an effort to offset some of the very significant increase that we've seen in the fuel bill,” Walsh said.

“We haven't been able to offset the very significant increase in the fuel bill. We estimate, similar to many airlines around the world, we've probably recovered about 60%,” Walsh said, according to The New Indian Express.

Chief financial officer Kiran Thadimarri also attributed the pressure to higher jet fuel prices and the depreciation of the rupee.

“The benchmark Singapore jet fuel index was 60% higher than Q2 last year. This increase, along with the rupee depreciation, flowed directly through to our cost base,” Thadimarri said.

According to Business Standard, the Singapore Jet Fuel Index, a benchmark for aviation fuel prices, was 60% higher than a year earlier. The average rupee-dollar exchange rate weakened to ₹95.09 during the quarter, compared with ₹87.06 in the corresponding period last year, increasing the cost of fuel and other dollar-denominated expenses, including aircraft leasing.

IndiGo's total income rose 24% year-on-year to ₹24,311.9 crore, while total expenses increased 18.6% to ₹26,188.4 crore. Fuel expenses accounted for approximately 38% of the airline's total expenditure during the quarter.

The pressure was also visible in passenger numbers. IndiGo carried approximately 2.75 crore passengers during the quarter, down 4.7% from a year earlier. Its passenger load factor, which measures the proportion of available seats occupied, fell to 80.3% from 82.5%, even as passenger yield increased to ₹6.30 per kilometre from ₹4.69.

IndiGo Reviews Flight Operations As Fuel Costs Remain High

IndiGo is also looking at adjusting its flight network as it prepares for the December quarter, which typically sees higher passenger demand because of festive and holiday travel.

Walsh said the airline would assess individual routes and flights rather than introduce broad-based capacity cuts. The carrier expects capacity, measured through available seat kilometres (ASK), to grow in the low single digits during the December quarter and across the financial year.

According to Reuters, IndiGo plans to take a flight-by-flight approach to network planning, with capacity adjustments guided by demand, fuel costs and geopolitical developments. The airline expects passenger revenue per available seat kilometre to increase by more than 25% year-on-year in the December quarter, based on trends observed in October.

IndiGo has already introduced fuel surcharges on domestic and international routes to recover part of the increase in operating costs. Business Today reported that Walsh expects elevated fuel costs to persist into the December quarter, adding to the pressure on airline profitability.

The airline will also conclude its wide-body damp-lease agreement with Norse Atlantic on October 31, citing high fuel prices and geopolitical pressures. Walsh said the decision was influenced by higher fuel prices and currency depreciation, which had made the arrangement less economical.

IndiGo plans to introduce Airbus A350 aircraft in 2028 as part of its international expansion strategy. Walsh said the airline would not delay its longer-term plans because of the current increase in fuel prices.