Interglobe Aviat

Interglobe Aviation reported a total income of ₹24,500 crores for the quarter ended December 31, 2025, marking a 7% increase year-over-year. EBITDAR for the quarter was ₹6,000 crores, broadly similar to the previous year. However, the reported Profit After Tax (PAT) stood at ₹549 crores, significantly lower than the prior year, primarily due to a ₹1,040 crore forex loss and ₹1,550 crore in exceptional item^📎s. Excluding these impacts, PAT would have been ₹3,130.6 crores.

The company experienced significant operational disruptions from December 3rd to 5th, 2025, leading to over 2,500 flight cancellations and hundreds of delays. This event resulted in customer inconvenience and a regulatory penalty of ₹22.2 crores from the DGCA, which, along with other expenses for customer support, contributed to an exceptional item^📎 of approximately ₹580 crores. Management expressed deep regret for the inconvenience caused and is conducting an in-depth review to strengthen internal processes and resilience.

The Government of India's new labor codes, which revise the definition of wages and expand employee benefits, led to a one-time^📎 provision of approximately ₹970 crores in Q3 FY26. This amount was recognized under exceptional item^📎s. Going forward^⏳, the recurring impact of these new rules will be incorporated into the employee benefits line items from April onwards, affecting the company's ongoing cost structure.

Capacity, measured in ASKs, grew by approximately 11% year-over-year in Q3 FY26. Passenger unit revenue (PRASK) decreased by 4.5% YoY to ₹4.51, and the load factor was 85%, down 2 points YoY, partly influenced by the December disruptions. Fuel CASK saw a 3% reduction, while CASK ex-fuel ex-forex increased by 2% YoY to ₹2.96, driven by contractual increases, rupee depreciation, and moderation in capacity growth.

IndiGo inducted 36 aircraft (gross) during the quarter, bringing its total fleet to 440 aircraft. A significant milestone was the introduction of India's first Airbus A321 XLR, featuring a dual-class cabin, which commenced operations on the Mumbai-Athens route on January 23, 2026. The company also began operations at Navi Mumbai International Airport with 15 daily flights, with plans to expand its presence, including international routes, in the coming months.

The company continues to face headwinds from the Indian rupee's depreciation, which has been around 5% over the last 12 months. To mitigate this, IndiGo has scaled up its hedging program to $3 billion. Additionally, it is investing $820 million in a GIFT city entity for aviation asset acquisition, part of which was used to prepay loans for 12 finance-leased aircraft, increasing owned aircraft to 28 (approximately 20% of the fleet). International expansion is also seen as a natural hedge against FX exposure.

IndiGo served nearly 32 million customers in Q3 FY26 and a total of 124 million customers in calendar year 2025, representing a 9% increase year-over-year. The company's BluChip loyalty program has rapidly scaled up to 10 million customers, signifying a significant step forward in customer engagement and understanding traveler preferences.