New Delhi: The “IndiGo forex hit” has emerged as a major headwind for India’s largest carrier. In the quarter ended September 30, 2025, IndiGo’s parent company, InterGlobe Aviation, reported a net loss of ₹2,582.10 crore, marking a sharp reversal from the previous year when the loss stood at ₹986.7 crore.
Revenue from operations rose by about 9.3 % year-on-year to nearly ₹18,555 crore, and total income climbed roughly 10.4 %. However, total expenses surged 18.3 % to about ₹22,081 crore. The biggest setback came from a foreign-exchange loss of ₹2,892 crore, compared with around ₹241 crore a year ago. That forms the crux of the “IndiGo forex hit”.
Operational strength despite financial turbulence
Despite the reported loss, the airline’s core operational performance remained robust. Excluding the forex impact, IndiGo would have recorded a net profit of around ₹104 crore. Passenger load factor stayed strong, and yields improved – rising from ₹4.55 per kilometre last year to ₹4.69 this quarter.
Company officials stated that while the year began with external challenges, operations stabilised by July, showing consistent recovery in August and September. The results underline that operational efficiency continues to be a pillar of IndiGo’s business resilience, even as the “IndiGo forex hit” dampened the quarter’s overall numbers.
Why the currency slide matters
The “IndiGo forex hit” stems from the airline’s high exposure to dollar-denominated costs — including aircraft leases, maintenance, engine rentals and fuel imports. With the rupee weakening, these expenses became significantly more expensive in local currency terms. As a result, cost pressures outpaced revenue growth, pulling the airline back into the red despite a steady passenger base.
Outlook: steady skies with cautious optimism
Looking ahead, IndiGo is set to induct its first long-range Airbus A321 XLR in December and plans to expand its international network through new leases and strategic partnerships. Analysts note that while the “IndiGo forex hit” was a major drag this quarter, the company’s focus on operational efficiency, modern fleet expansion and network growth could offset similar shocks in the future.
The airline expects moderate capacity growth in the early-teens range for FY26, signalling confidence in the long-term fundamentals of India’s aviation market.
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