IndiGo expects to begin receiving Airbus A350 wide-body aircraft in the second quarter of 2028, even as rising fuel costs and rupee depreciation pushed the airline to a net loss of Rs 1,879.1 crore in the July-September quarter, chief executive Willie Walsh said on Monday.
Walsh, speaking at his first in-person briefing since taking charge as CEO in August, said IndiGo continued to see significant growth opportunities and would focus on maintaining a competitive cost base. He acknowledged that the operating environment remained difficult for airlines but said the carrier would continue to navigate the pressures.
“We see incredible opportunities,” Walsh said, referring to IndiGo’s planned entry into the long-haul market. He said the airline had the necessary ingredients to compete in long-haul operations, with A350 deliveries expected to start in the April-June quarter of 2028.
Fuel expenses rose sharply during the quarter. IndiGo’s fuel bill increased 67.2% year on year to Rs 9,966.8 crore, compared with Rs 5,961.8 crore in the corresponding period last year. Elevated fuel costs and rupee depreciation weighed on the airline’s financial performance.
The airline also reduced capacity amid the operating pressure. Available seat kilometres declined 1% to 40.8 billion, while passenger numbers fell 4.7% to 2.7 crore during the quarter. Passenger ticket revenue nevertheless increased 29.3% to Rs 20,652.2 crore, although the load factor declined by 2.2 percentage points to 80.3%.
The September-quarter loss was IndiGo’s third consecutive quarterly loss, according to the report. Total income rose 24% year on year to Rs 24,311.9 crore, reaching Rs 24,311.9 crore. Walsh had previously said that fuel costs were likely to remain elevated for some time and that the airline would continue examining internal measures to offset the increase.
IndiGo also identified the upcoming Navi Mumbai airport as an important expansion opportunity. Walsh said the decision to shift some international flights to the new airport had been taken in the airline’s interest. The move would give the carrier an additional operating base in the Mumbai region as the city’s airport infrastructure expands.
As of September 30, IndiGo had an operational fleet of 442 aircraft and a cash balance of Rs 52,685.4 crore. This included Rs 39,929 crore in free cash and Rs 12,756.4 crore in restricted cash. Its total debt, including capitalised operating lease liabilities, stood at Rs 87,303.1 crore.
The airline currently operates more than 2,100 flights daily. During the July-September quarter, it operated a peak of 2,020 daily flights, including non-scheduled services. The next major milestones are the planned start of A350 deliveries in 2028 and the deployment of selected international services from Navi Mumbai airport.
