IndiGo Reports Rs 2,582 Crore Loss in Q2 FY2025 Due to Forex Challenges While Expanding International Operations

Shares of IndiGo declined by more than 1 percent, closing at Rs 5,635 per share on the BSE.

New Delhi:

IndiGo, India's largest airline, reported a significant loss of Rs 2,582.10 crore for the September quarter, primarily due to increased foreign exchange losses and rising expenses. The carrier anticipates receiving its first long-range Airbus A321 XLR aircraft in December.

The airline, which had recorded a loss of Rs 986.7 crore during the same period last year, stated that hedging strategies and increased foreign currency revenue from international operations will help mitigate currency fluctuations. In contrast, the airline had posted a profit of Rs 2,176.30 crore in the preceding June quarter.

As part of its international expansion strategy, IndiGo plans to acquire additional aircraft through damp leases. Currently, the airline has approximately 40 aircraft on ground (AOG), a figure that Chief Financial Officer Gaurav M Negi indicated would likely remain stable until year-end.

"We have achieved excellent operational performance," stated IndiGo CEO Pieter Elbers during a virtual media conference following the announcement of financial results.

According to regulatory filings, InterGlobe Aviation, IndiGo's parent company, generated a total income of Rs 19,599.5 crore in the second quarter of the current fiscal year, representing an increase from Rs 17,759 crore recorded during the same period last year.

The airline clarified that the net loss of Rs 2,582.10 crore for the September quarter includes the impact of currency movements relating to dollar-based future obligations.

"Excluding currency movement effects, IndiGo recorded a net profit of Rs 1,039 million compared to a net loss of Rs 7,539 million during the corresponding period last year," the company stated.

Supplementary rentals combined with aircraft repair and maintenance costs increased by 18.9 percent to Rs 3,263 crore, while foreign exchange losses amounted to Rs 2,892.1 crore in the September quarter, significantly higher than the Rs 240.6 crore loss reported in the year-ago period.

Total expenses for the September quarter rose by 18.3 percent to Rs 22,081.2 crore.

"Total income for the quarter ended September 2025 reached Rs 195,995 million, representing a 10.4 percent increase compared to the same period last year. Passenger ticket revenues were Rs 159,667 million, up 11.2 percent, while ancillary revenues increased by 14.2 percent to Rs 21,411 million compared to the same period last year," the company reported.

The airline's yield, measured as rupee earned per kilometer, grew by 3.2 percent to Rs 4.69 in the September quarter from Rs 4.55 in the previous year.

Elbers highlighted that the airline's optimized capacity deployment delivered 10 percent growth in topline revenue, excluding currency movement impacts, resulting in an operational profit of Rs 104 crore compared to an operational loss in the previous year.

"The year began with significant external challenges across the industry, but we observed stabilization in July followed by strong recovery through August and September. Looking forward, we have enhanced our operational plans for the second half to meet demand and continue driving growth.

"Consequently, we have increased our capacity guidance for the full financial year 2026 to early teens growth," he stated in the release.

According to Elbers, the long-range A321 XLR aircraft, configured with 183 economy class seats and 12 stretch seats, is expected to arrive in the second half of December.

The airline, which commanded a 64.3 percent domestic market share in September, is expanding its international network with leased Boeing 787 Dreamliners, while the upcoming long-range A321 XLRs will enable flights to new destinations.

Shares of the airline declined by more than 1 percent, closing at Rs 5,635 apiece on the BSE.