India's leading airline, IndiGo, experienced a substantial loss of ₹987 crore in the second quarter, marking Interglobe Aviation's first quarterly deficit in two years. Increased fuel and aircraft rental costs were significant contributors to these losses.

As the largest airline in the country by market share, IndiGo reported a loss of ₹9.89 billion ($117.7 million) for the three months ending September 30, a sharp contrast to the profit of ₹1.88 billion during the same period last year, according to Reuters.

“Despite the challenges, IndiGo's growth and expansion continued, with our revenue increasing by 14.6% year-on-year to ₹178 billion in the second quarter. The traditionally weaker season was further affected by issues related to grounded aircraft and rising fuel costs. However, we are beginning to see improvements as the number of grounded aircraft and related expenses decrease,” said IndiGo CEO Pieter Elbers.

In this quarter, IndiGo recorded passenger ticket revenues of ₹14,359 crore, a 10% rise, while ancillary revenues grew by 21% year-on-year to ₹1,875 crore. The airline also announced plans to introduce a business class within two weeks, aiming to enhance customer experience. IndiGo anticipates a capacity increase in the third quarter, with early double-digit growth compared to the same period in fiscal year 2024. The company has a total cash balance of ₹39,341 crore, which includes ₹24,359 crore in free cash and ₹14,982 crore in restricted cash.