Despite reaching a record quarterly revenue of ₹23,472 crore, IndiGo faced a perfect storm of regulatory changes and operational failures in late 2025.
1. The December Operational Meltdown
The most visible hit came from the “December Crisis,” where IndiGo was forced to cancel over 4,200 flights between December 1 and December 9, 2025.
- The Cause: The airline lacked sufficient pilot strength to implement the new, more stringent Flight Duty Time Limitation (FDTL) norms mandated by the DGCA.
- The Cost: Operational disruptions accounted for an exceptional expense of ₹577.2 crore, covering customer compensation, re-accommodation, and system reboots.
- Regulatory Fallout: The DGCA imposed a ₹22.2 crore penalty and mandated a ₹50 crore bank guarantee following the chaos.
2. Implementation of New Labour Codes
A massive one-time provision of ₹969.3 crore was set aside during the quarter to align with India’s new national Labour Codes. This provision covers historical liabilities related to social security, gratuity, and other employee benefits now required under the updated legal framework.
3. Currency Volatility
The airline faced an adverse currency impact of ₹1,035 crore due to the depreciation of the Indian Rupee against the US Dollar. As a major portion of airline costs (leases, maintenance, and fuel) is dollar-denominated, the weaker rupee significantly compressed margins.
IndiGo Q3 FY26 Financial Snapshot
| Metric | Q3 FY25 | Q3 FY26 | Change (YoY) |
| Net Profit | ₹2,448.8 Cr | ₹549.8 Cr | ▼ 77.6% |
| Revenue from Ops | ₹22,111 Cr | ₹23,472 Cr | ▲ 6.2% |
| Exceptional Items | Nil | ₹1,546.5 Cr | N/A |
| Passengers Carried | 31.0 Million | 31.9 Million | ▲ 2.8% |
| Yield (Per KM) | ₹5.43 | ₹5.33 | ▼ 1.8% |
The “Silver Lining”: Underlying Performance
CEO Pieter Elbers emphasized that the airline’s fundamentals remain intact. If the one-time exceptional costs and forex losses are excluded, the underlying profit for the quarter was a healthy ₹3,130 crore.
- Fleet Expansion: IndiGo added a net of 23 passenger aircraft during the quarter, ending with a total fleet of 440 planes.
- International Leap: The airline received its first Airbus A321XLR in January 2026, marking a new phase for its long-haul international ambitions.
Conclusion: A Stabilizing Flight Path
Looking ahead to Q4 FY26, IndiGo has moderated its capacity growth guidance to 10% (down from earlier high-teen estimates) to ensure operational stability. The airline informed the DGCA on January 20 that it has now secured enough pilots to fully implement FDTL norms without further cancellations. While Q3 was a “quarter of exceptions,” the management expects a return to normal margin profiles as the 10% domestic flight cut mandated by the regulator expires in late March 2026.
