IndiGo that made passengers suffer is now hurting itself, massive losses revealed
New Delhi (The Uttam Hindu): The past month proved extremely difficult for air travellers, and its impact is now clearly visible in the financial results of the country’s largest airline, IndiGo. Frequent flight cancellations, airport chaos and operational disruptions not only troubled passengers but also caused a major blow to the airline’s earnings.
According to the December quarter results released by InterGlobe Aviation, IndiGo reported a sharp decline in profit. While the airline had posted a net profit of ₹2,449 crore in the same quarter last year, this time the figure dropped to just ₹550 crore, reflecting a steep fall of nearly 78 percent.
Three reasons behind the pressure
The company cited three major reasons for the decline in profits. The implementation of new labour laws led to an additional burden of around ₹969 crore. Operational disruptions and large-scale flight cancellations at the beginning of December resulted in losses of nearly ₹577 crore. Apart from this, the weakening of the rupee against the US dollar further increased costs for the airline.
Revenue rises but profit slips
Despite the sharp fall in profit, IndiGo’s overall revenue showed growth. The airline’s revenue increased by about 6 percent compared to last year. Management stated that without the impact of labour law changes and operational issues, profits could have exceeded ₹3,000 crore. Passenger numbers also rose, with around 3.19 crore travellers flying with IndiGo during the December quarter, marking a 2.8 percent increase year-on-year. However, the average revenue per seat saw a slight decline.
CEO says challenges faced but fundamentals remain strong
IndiGo CEO Pieter Elbers acknowledged that operational challenges in early December created difficult conditions for the airline. He said flight cancellations affected both passengers and the company. However, Elbers expressed confidence, highlighting that the airline achieved revenue of nearly ₹245 billion, reflecting its strong market position. He added that IndiGo continues to focus on network expansion and service quality improvements to provide a more reliable and better travel experience in the future.