In light of elevated fuel prices, India’s largest airline, IndiGo, is looking to hike air fares to navigate the high-cost environment faced by Indian airlines. The airline in the Jan-Mar quarter faced significant headwinds from geopolitical tensions, volatile fuel prices, and currency depreciation.
“So for us it is very clear that we need to take fares up to protect ourselves against some of these additional costs that are showing up and for the moment what we are discovering is that the fares are sticking, the demand is there,” said Rahul Bhatia, Founder and Managing Director, InterGlobe Aviation Ltd, in the post-earnings conference call on Friday.
“For the moment, what we are seeing is as we take the fares up, the market is inelastic to these hikes and fares, and we just deal with this on a daily basis and see where we go,” Bhatia added.
The airline saw demand disruption in the quarter due to the escalating conflict in West Asia, affecting international operations to the region and Europe, which accounted for 18 per cent of total capacity, or about 160 daily flights.
In Q4 FY26, the airline recorded a net loss of ₹2,537 crores, as against a profit of ₹3,067 crores in the same period a year ago. In the March quarter, the rupee depreciated sharply by around 5 per cent against the US dollar, resulting in a foreign exchange loss of ₹4,820 crores for the airline.
The management outlined that the bottom line was also impacted by a high base in the same period last year, when demand was boosted by Maha Kumbh Mela-related travel.
Revenue from operations in the quarter was ₹22,438 crore, recording modest year-on-year growth of 1.3 per cent.
30/05/2026 Dev Kachari/ET Infra
To Read the News in full at Source, Click the Headline
0 Post a Comment:
Post a Comment