India’s largest airline IndiGo, reported a sharp drop in quarterly profit on Thursday as operational disruption and mass flight cancellations in December 2025 took a heavy toll on earnings. InterGlobe Aviation Ltd, the airline’s parent company, saw consolidated net profit tumble, about 77-78% year-on-year in the October-December quarter, highlighting the financial impact of prolonged operational challenges.
The airline posted a net profit of roughly ₹549 crore for the third quarter of the 2025- 26 financial year, compared with around ₹ 2,448 crore in the same period a year earlier, according to the company filings. IndiGo said the decline in one-time costs was linked to December’s widespread flight disruption and to higher expenses arising from the implementation of new labour codes.
IndiGo noted that the December discussions were triggered by inadequate crew planning following changes to the pilot duty-time regulations. These issues led to the cancellation of thousands of flights, disrupting travel plans for passengers across the country. The airline recorded approximately ₹577 crore in disruption-related costs, including passenger compensation, accommodation, and logistical expenses. Additional costs stemming from labour regulation changes further weighed on profitability.
Despite the sharp fall in profit, IndiGo’s total revenue rose by more than 6% year-on-year during the quarter, supported by strong passenger demand and higher ancillary income. The carrier also reported capacity growth and said it expects to increase available seat kilometres by about 10% in the upcoming quarter as travel demand remains robust.
Following the disruption, India’s aviation regulator, the Director General of Civil Aviation (DGCA), imposed record fines, issued warnings to senior management, and directed the airline to implement corrective measures to ensure regulatory compliance.
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IndiGo’s chief executive said that while December was challenging, the airline’s long-term fundamentals remain strong, and ongoing operational improvements are expected to stabilise performance in the coming quarters.
