IndiGo Q3 Profit Plummets 77% to ₹550 Crore Amid Labour Code Impact and December Disruptions

New Delhi, 22 January 2026:InterGlobe Aviation, the parent company of India’s largest airline IndiGo, reported a 77.6% drop in its consolidated net profit for the third quarter of FY26 (Q3FY26). The airline posted a profit of ₹549.8 crore, compared with ₹2,448.8 crore in the same period last year.

Factors Behind the Profit Decline

The sharp decline in IndiGo’s profits comes amid:

• Labour code-related provisions impacting operational costs.

• Operational disruptions in December, which affected flight schedules and passenger volumes.

These factors offset the airline’s earlier growth momentum and pressured its quarterly earnings.

Industry Context

Despite challenges, IndiGo remains India’s largest carrier by market share, and domestic air travel demand continues to recover. Analysts say the profit dip is largely cyclical and tied to short-term disruptions rather than structural weaknesses.

“The airline’s performance was affected by one-time costs related to compliance and operational chaos in December. Long-term growth prospects remain intact,” said a market analyst.

Outlook for Q4 FY26

IndiGo is expected to focus on:

• Operational efficiency improvements

• Managing costs linked to labour compliance

• Maximizing holiday and peak-season travel revenue

The airline’s management remains cautiously optimistic about recovering profitability in the final quarter of FY26, especially as domestic passenger traffic stabilizes.