IndiGo profit falls sharply on geopolitical tension, Air India crash – News Air Insight

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India’s largest airline IndiGo reported a sharp 20% fall in profit as air travel was impacted due to a conflict between India and Pakistan followed by weak travel sentiment after the crash of an Air India aircraft in June.

The airline, which has 60% share of India’s domestic market, posted a profit of Rs 2,176.3 crore for the April–June period, down 20% from Rs 2,728.8 crore a year ago despite revenue being up by 4.73% at Rs 20,496.30 crore.

India briefly restricting flights from 32 airports in airports on the north and western border in May amid border skirmishes with Pakistan following a terrorist attack in April.

“The June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector. Despite these industry wide disruptions, we reported a net profit margin of around 11% for the quarter ended June 2025,” Pieter Elbers, CEO of indigo said.

Yield- a metric for profitability for airlines also dropped by 5% as the airline had to reduce fares to fill aircraft which dropped by a little over 2%.


The airline though gave optimistic note and outlined plans for expansion. Elbers said the airline has begun long-haul services to Europe, launching flights to Amsterdam and Manchester in early July. Given strong demand, IndiGo will double its frequency to Amsterdam and add a fourth weekly flight to Manchester. A reciprocal codeshare with KLM will also expand the airline’s reach across Europe.“We remain firm on our full year capacity guidance of early double digit capacity addition. While we have taken a number of proactive steps as part of our plan to align capacity with the demand, we are using the downtime to conduct structural inspections on some aircrafts and implementing fleet upgrades, ensuring the fleet is fully prepared for the seasonally strong third quarter,” Chief Financial Officer Gaurav Negi said in a post-results call with analysts.After debuting on the Delhi–Mumbai route late last year, IndiGo’s business class product (called Stretch) has now been extended to flights to Bangkok and will soon launch on routes to Singapore and Dubai. Elbers said the market response has been encouraging, with load factors improving gradually.

On the domestic front, IndiGo recently began operations from Hindon airport in Delhi and is looking to expand its network further.



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