IndiGo Q3 net nosedives 78%

Dec flight disruptions, labour Codes, depreciation hit earnings

- DEEPAK PATEL

The consolidated net profit of IndiGo fell by 77.6 per cent year-on-year (Yo-Y) to ₹549 crore in the third quarter of 2025-26 (Q3FY26) due to implementation of new labour Codes, rupee depreciation and the operational meltdown in December.

The country's largest airline reported "exceptional items" of ₹1,546.5 crore in Q3, mainly due to a ₹969.3 crore onetime hit from the new Labour Codes and a ₹577.2 crore expense linked to its flight disruptions in December.

The airline cancelled 4,290 flights between December 1 and December 9 as it did not have enough pilots to implement the new pilot duty rules, which came into effect in November and mandate more humane working hours.

Gaurav Negi, Chief Financial Officer of IndiGo, said on Thursday that the airline inducted 36 aircraft on a gross basis during the quarter, including 24 from its order book and 12 through damp leases, while re-delivering 13 aircraft, taking the fleet to 440 planes at the end of Q3. For Q4FY26, he said, the airline expects capacity growth of around 10 per cent year-on-year, a moderation from its earlier guidance of growth in the teens, primarily due to schedule adjustments following "regulatory requirements." Following IndiGo's operational meltdown, the DGCA had in December mandated a 10 per cent cut in domestic flights for the entire winter schedule that remains in effect till late March.