IndiGo, operating under InterGlobe Aviation, has reduced its capacity and passenger unit revenue forecast for Q3FY26. The revision comes after the Directorate General of Civil Aviation (DGCA) ordered the airline to cut 10% of its domestic winter schedule following widespread operational chaos.
The airline now expects its Q3 capacity to grow in “high single to early double-digit percentage”, down from the earlier forecast of “high-teens” growth forecast.
Here is a detailed look at the highlights of IndiGo’s Q3 guidance
#1 IndiGo trims Q3 expectations
The airline said it cannot yet quantify the total financial impact of the disruptions. However, it expects a “downward moderation” in the guidance it had earlier issued for Q3 FY26.
IndiGo now expects capacity growth — measured in Available Seat Kilometres (ASKs) — to slow to high single-digit or early double-digit levels, compared with the earlier expectation of high-teens growth.
#2 IndiGo reduces revenue outlook for Q3
Passenger unit revenues (PRASK), earlier expected to be flattish to slightly higher, are now likely to see a mid-single-digit decline on a year-on-year basis.
In Q2FY26, IndiGo expanded its capacity (ASKs) rising 7.8% year-on-year to 41.2 billion. Its Passenger Revenue per Available Seat Kilometre (PRASK) also improved with load factors flat at 82.5%.
#3 4,500 flight cancellations hit revenue: Indigo
While IndiGo has reinstated operations across its optimised network, as per its latest BSE filing, IndiGo said the cancellation of around 4,500 flights during the first week of December has resulted in a loss of revenue. “We also continue to provide passenger support services for the operational disruptions, for which additional expenses are being incurred,” the airline said.
#4 DGCA’s 10% flight cut adds pressure on IndiGo
The DGCA notification on December 9 to curtail scheduled flights for the Domestic Winter Schedule 2025 by 10% has added another layer of pressure. The company noted that “this will have an impact on our capacity guidance for Q3FY26, Q4FY26 and FY26.”
However, IndiGo added that it is working to comply with the DGCA notice and will share revised capacity guidance for Q4 and FY26 once its internal assessment is complete.
The CEO Vikram Singh Mehta, in a video message on Wednesday, stated that the board has decided to involve external technical experts to work with the management and help determine the root causes that led to the disruption. “They happened because of a combination of internal and unanticipated external events”, including minor technical glitches, scheduled changes linked to the start of the winter season, adverse weather conditions, increased congestion in the aviation system, and implementation of/ and operation under the updated Crew Rostering rules, Mehta said. However Mehta stressed that the airline did not try to bypass the rule. “IndiGo has followed the pilot fatigue rules as they came into effect. We operated under the new rules throughout, both in July and in November. We did not attempt to bypass them,” he said.