IndiGo says it may raise airfares further as demand remains resilient despite higher ticket prices.
The airline is using fare hikes to recover rising fuel and operating costs.
IndiGo reported a ₹2,536.9 crore loss in the March quarter amid a challenging operating environment.
IndiGo Passengers May Pay More as Airline Eyes Further Fare Hikes
Airline says passengers continue to book tickets despite higher fares as it seeks to offset rising fuel and operating costs
Summary
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India's largest airline IndiGo has indicated that airfares could rise further as it looks to recover higher fuel and operating costs, saying passenger demand remains strong despite recent fare increases.
The comments came as the airline reported a net loss of ₹2,536.9 crore for the quarter ended March 2026, compared with a profit of ₹3,067.5 crore a year earlier. Total income, however, rose more than 3% year-on-year to ₹23,830.7 crore.
According to the airline, sharp rupee depreciation, changes in labour laws and a challenging operating environment weighed on profitability during the quarter.
Demand Holding Up Despite Higher Fares
Speaking during IndiGo's earnings call, Managing Director Rahul Bhatia said the airline remains focused on raising fares to protect itself from rising costs.
"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," Bhatia said.
He added that demand has remained resilient despite higher ticket prices. "For the moment, what we are discovering is that the fares are sticking. The demand is there," he said, noting that the market has so far remained largely unaffected by fare increases.
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Fuel Costs Continue to Pressure Margins
Chief Financial Officer Gaurav Negi said fuel expenses have risen sharply in recent months, prompting the airline to introduce fuel charges to recover part of the additional costs.
According to Negi, IndiGo has recovered a large portion of the increase in domestic markets and is trying to pass on a significant share of the higher fuel costs on international routes as well.
"We've not been able to completely offset the increased fuel environment that we are in," Negi said, adding that May was stronger than April in terms of booking trends and load factors.
Challenging Year Impacts Profitability
IndiGo said FY26 was marked by a difficult operating environment that affected earnings despite growth in revenue and capacity.
Bhatia said the airline increased capacity by 9.5% during the year, while total income rose more than 6%. Excluding foreign exchange impacts and exceptional items, IndiGo reported a profit of ₹7,500 crore for FY26. According to PTI, the airline's domestic market share stood at 63.3% in March.
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