IndiGo to raise ticket prices as jet fuel costs soar
What's the story
IndiGo has announced that it will pass the recent increase in jet fuel prices on to its customers. The decision comes after the airline reported a massive loss of ₹2,537 crore in Q4 of FY26, as compared to a profit of ₹3,067 crore during the same period last year. The airline's Managing Director Rahul Bhatia said that despite these challenges, their business performance remained resilient.
Financial challenges
External factors contributed to IndiGo's loss in FY26
IndiGo's loss in FY26 was attributed to several external factors, including "exceptionally sharp rupee depreciation, changes in labor laws and a challenging operating environment." The airline's share price fell 3.5% to ₹4,405.95 on the Bombay Stock Exchange (BSE). Despite these challenges, Bhatia emphasized that IndiGo maintained a strong balance sheet with substantial liquidity amid prolonged periods of volatility.
Business resilience
Resilient business performance amid challenges
Bhatia noted that despite the challenging operating environment in FY26, IndiGo's underlying business performance remained resilient. He said, "During the year, our capacity grew by 9.5% and total income increased by over 6%." Excluding foreign exchange and exceptional items, IndiGo delivered a profit of ₹7,500 crore during this period.
Operational adjustments
Bhatia addresses operational crisis, thanks customers for their patience
Responding to the operational crisis in December that affected many flyers, Bhatia said, "Not only did the Dec disruption cause a significant impact on our results, what transpired fell short of the standards we set for ourselves when we began this journey in 2006." He also thanked customers for their patience during this time. As for future plans amid high fuel prices and softer demand from mid-June onwards, Bhatia said IndiGo will take a calibrated approach to capacity management.