IndiGo profit slumps 20% as AI171 crash, airspace curbs weigh

Despite disruptions, airline carried 12% more passengers

- DEEPAK PATEL

Low-cost carrier IndiGo on Wednesday announced that its consolidated profit dropped 20.5 per cent year-on-year (Y-o-Y) to ₹2,174.9 crore in the first quarter of 2025-26 (FY26) due to airspace restrictions, geopolitical disruptions, and the impact of the AI171 crash, which led to widespread flight cancellations and depressed ticket yields.

"The quarter was marked by a series of external events. Geopolitical events, airspace restrictions, and the unfortunate accident, leading to a higher flight and passenger cancellations and moderation in yields," said Gaurav Negi, chief financial officer, IndiGo.

Yield refers to the average fare paid per passenger per kilometre flown. Pakistan has shut its airspace for Indian carriers since April 24.

Despite these disruptions, the airline carried 12 per cent more passengers during the quarter, clocking 31 million travellers, double the industry growth of six per cent.