IndiGo swings to Rs 2,537 crore Q4 loss as rupee depreciation, disruptions weigh on earnings

India’s largest airline IndiGo reported a consolidated net loss of Rs 2,536.9 crore for the March quarter compared with a profit of Rs 3,067.5 crore a year earlier, as sharp rupee depreciation and a challenging operating environment weighed on its performance, PTI reported.The airline’s total income rose more than 3 per cent to Rs 23,830.7 crore in the fourth quarter of FY26 from Rs 23,097.5 crore in the corresponding period last year.“For the quarter ended March 2026, IndiGo reported a net loss of INR 25,369 million. Excluding the impact of foreign exchange and exceptional items, the company reported a net profit of Rs 19,206 million,” the airline said in a release.For the full 2025-26 financial year, IndiGo posted a net loss of Rs 2,393.6 crore. However, excluding the impact of foreign exchange movements and exceptional items, the carrier said it would have reported a profit of Rs 7,502.5 crore.Despite the losses, IndiGo expanded capacity by 9.5 per cent during FY26 and recorded a 6.4 per cent rise in total income to Rs 89,513.4 crore.“Exceptionally sharp rupee depreciation, changes in labour laws and a challenging operating environment offset the operational profit and the company reported a net loss of Rs 23,936 million,” the airline said.According to its financial statements, the airline incurred a foreign exchange loss of around Rs 8,100 crore during FY26. The impact of flight disruptions in December stood at Rs 580 crore, while expenses related to the implementation of new labour laws were Rs 1,200 crore.IndiGo Managing Director Rahul Bhatia said FY26 was marked by an exceptionally challenging operating environment that materially affected profitability.“During the year, our capacity grew by 9.5 per cent, and total income increased by over 6 per cent. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of Rs 75 billion,” he said.The airline faced significant operational disruptions during the last financial year, particularly between December 3 and 5, when 2,507 flights were cancelled and 1,852 flights delayed, affecting more than three lakh passengers across the country.IndiGo expects capacity, measured in Available Seat Kilometres (ASKs), to grow around 3-4 per cent in the June quarter compared with the first quarter of FY26.The airline also saw leadership changes during the year. CEO Pieter Elbers stepped down in March, and later the carrier announced the appointment of William Walsh, a pilot and current chief of global airline body IATA, as its next CEO.IndiGo’s domestic market share stood at 63.3 per cent in March.Shares of IndiGo fell 3.27 per cent to close at Rs 4,418.40 on the BSE.