InterGloble Aviation, which runs IndiGo Airlines, reduced its capacity guidance for the January-March quarter of 2025-26 to 10% from the mid-teens earlier on January 22.
The airlines’ chief financial officer, Gaurav Negi, in a post Q3FY26 earnings analysts call, said that capacity moderation is to adjust to the airlines’ reduced schedule following the December 2025 crisis.
He added that the airline needs to secure additional leased aircraft to address operational challenges stemming from ongoing Pratt & Whitney engine groundings.
IndiGo’s management also highlighted that despite the December crisis, when the airline cancelled around 2,500 flights between December 3-5, there had been no change to IndiGo’s long-term strategy.
What did Pieter Elbers say?
Pieter Elbers, the airline’s chief executive officer, added that IndiGo will operate the first international flight of its Airbus A350-900 XLR aircraft to Athens on January 23.
He added that IndiGo’s refund processing outpaced standard timelines following the disruption and said that the airline also implemented additional compensation measures beyond regulatory requirements called “gesture of care” for heavily impacted customers.
Elbers acknowledged the response, while noting the “sheer scale” meant some passengers may not have received immediate assistance.
He also said that the airline plans to expand its premium services across 65 aircraft from around 40 aircraft at the moment.
When asked if executive accountability should extend to the CEO level, Elbers pointed to the airline’s track record.
“The overall year, looking at on-time performance and swift recovery, kind of underpins the strong foundations and basic processes at IndiGo,” Elbers said. The DGCA acknowledged the operational normalisation in subsequent communications, he added.
Elbers also declined to quantify the spillover financial impact of the December crisis to future quarters, describing it as premature. He noted that seasonal demand fluctuations, aircraft on-ground events, and weather disruptions represent normal operational variables for airlines.
IndiGo’s numbers
IndiGo’s CFO also said that the airline is confident that it will not receive any additional fines from India’s aviation regulator. Negi also highlighted that the airline maintains a substantial foreign exchange exposure of nearly $10 billion to the US Dollar.
IndiGo’s third-quarter profit plummeted 77 percent to Rs 549 crore, dragged down by a major operational collapse in early December that cancelled 2,500 flights and stranded over 350,000 passengers.
The airline’s quarterly profit fell from Rs 2,448 crore a year earlier. Excluding exceptional items, profit declined 18 per cent to Rs 3,130 crore from Rs 3,846 crore in the prior year period.
Three exceptional charges, including new labour law requirements, which triggered a one-time charge of approximately Rs 1,000 crore, currency fluctuations on dollar-denominated obligations which cost another Rs 1,000 crore as the Indian rupee weakened and the December disruption which cost the airline Rs 577 crore rupees in exceptional charges covering refunds, care provisions, and operational recovery costs, impacted the airlines’ Q3FY26 results.
The airlines’ management also highlighted that its cost per available seat kilometre, excluding fuel and currency effects, remains in mid-single digits amid inflation, fleet deployment changes, and network optimisation efforts. Dollar-denominated costs, including fuel, leasing, and maintenance, continue exposing the airline to currency volatility despite expanded hedging strategies and international route expansion in euros and other currencies.
As of 31 st December 2025, IndiGo has a fleet of 440 aircraft. These include 27 A320 CEOs, 180 A320 NEOs, 171 A321 NEOs, 1 A321XLR, 46 ATRs, 3 A321 freighters, 2 Boeing 777 planes, 5 B Boeing 737 planes and 5 Boeing 787 planes; a net increase of 23 passenger aircraft during the quarter.