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IndiGo, operated by InterGlobe Aviation, reported a net profit of INR 549 crore for the December quarter, down sharply from INR 2,449 crore in the same period last year. The decline reflects substantial one-time costs, including INR 577 crore due to flight disruptions in early December and INR 969 crore linked to new labour law compliance. Despite these challenges, revenue grew to INR 24,541 crore from INR 22,993 crore. Over 2,500 flights were cancelled and nearly 1,900 delayed, affecting more than 300,000 passengers. The airline's underlying performance remained stable, but exceptional costs drove the net profit drop.
Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, fell nearly 4% after the airline reported a sharp drop in net profit for the December quarter. The net profit stood at INR 549.1 crore, a 78% decline compared with INR 2,448.8 crore earned in the same quarter last year. On the BSE, the stock dropped 3.87% to INR 4,723.60 per share, while on the NSE it declined 3.79% to INR 4,722.50 per share. Advertisement
The profit contraction was largely driven by exceptional costs. The airline recorded a total impact of INR 1,546.5 crore, which included INR 577.2 crore due to massive flight disruptions in early December and INR 969.3 crore linked to implementing new labour codes. IndiGo was also fined INR 22.2 crore, which was included in exceptional items.
Operational disruptions were particularly severe between December 3 and 5, when 2,507 flights were cancelled and 1,852 delayed, affecting more than 300,000 passengers across India. Following these disruptions, the Directorate General of Civil Aviation (DGCA) reduced IndiGo's winter schedule by 10% until February 10. CEO Pieter Elbers stated that despite these disruptions, the airline achieved total revenue of around INR 24,541 crore, a growth of roughly 7% over the previous year. Excluding exceptional items and forex impacts, the underlying profit was INR 3,100 crore.
Revenue growth came from passenger ticket sales and ancillary services, but it was insufficient to offset the exceptional costs and fines. Analysts noted that while the airline faced short-term operational and regulatory pressures, demand remained steady and the airline's capacity continued to expand. Cost management and operational stability are expected to remain critical for restoring investor confidence.
Source PTI
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