India's biggest airline, IndiGo, on Thursday reported a 78 per cent slump in December quarter net profit as flight disruptions and implementation of the new labour code took a toll on its earnings.
The airline reported a net profit of Rs 549.1 crore in the October-December quarter, compared with Rs 2,448.8 crore earnings in the year-ago period, according to a company statement.
The company said it took a hit of Rs 1,546.5 crore in the third quarter. This included Rs 577.2 crore due to massive flight disruptions witnessed during early December and another Rs 969.3 crore on account of the implementation of new labour laws.
IndiGo was slapped with a fine of Rs 22.2 crore for the flight disruptions, which it has accounted for in exceptional items.
Currency movement related to dollar-based future obligations aggregated to Rs 1,035 crore in the December quarter.
In the third quarter of the current financial year, InterGlobe Aviation, the parent of IndiGo, recorded a total income of Rs 24,540.6 crore, higher than Rs 22,992.8 crore posted in the year-ago period.
IndiGo CEO Pieter Elbers said in the December quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from December 3 to 5.
"Despite these operational disruptions, IndiGo delivered a topline of around 245 billion rupees in the December quarter, reflecting a growth of around 7 per cent with a reported profit of around 5 billion rupees and an underlying profit excluding exceptional items and forex of 31 billion rupees," Elbers said.
In the December quarter, the airline carried nearly 32 million passengers, and the total number of passengers flown last year stood at around 124 million.
"Exceptional items for the quarter ended December 2025 were INR 15,465 million, including estimated provision towards implementation of new labour laws of INR 9,693 million, costs related to operational disruptions of INR 5,550 million and penalty of INR 222 million as per the DGCA order," the release said.
The airline's fleet had 440 planes at the end of the December quarter.
"Our long-term fundamentals remain strong, backed by our expanding fleet, growing domestic and international network," Elbers said.
In early December, IndiGo faced massive operational disruptions, and subsequently, the Directorate General of Civil Aviation (DGCA) curtailed the airline's winter schedule by 10 per cent until February 10.
Between December 3 and 5, 2,507 flights were cancelled, and 1,852 flights were delayed, impacting over 3 lakh passengers at airports across the country, the regulator said in a statement on January 20.
On January 17, DGCA announced slapping fines totalling Rs 22.20 crore for the December flight disruptions, and had also warned CEO Pieter Elbers and two other senior executives for the lapses.
It also directed the airline to furnish a bank guarantee of Rs 50 crore to ensure long-term systemic corrections.
IndiGo has assured operational stability and no flight cancellations after February 10, 2026, based on the current approved network, above crew strength, and the removal of the two FDTL (Flight Duty Time Limitations) exemptions approved on December 6, 2025, according to the DGCA statement issued on January 20.
At the end of December, the airline had a total cash balance of Rs 51,606.9 crore, comprising Rs 36,944.5 crore of free cash and Rs 14,662.4 crore of restricted cash.
"The capitalised operating lease liability was Rs 524,784 million. The total debt (including the capitalised operating lease liability) was Rs 768,583 million," the release said.
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