IndiGo Sees 78% Profit Slump in Q3 on Disruptions and Labour Costs
Flight disruptions in early December and new labor laws caused a Rs 1,546 crore exceptional hit, dragging down earnings sharply.
India’s largest airline, IndiGo, on Thursday reported a sharp 78 per cent decline in its net profit for the December quarter, citing widespread flight disruptions and the financial impact of implementing new labour laws. The airline said these factors significantly affected its earnings during the October–December period of the current financial year.
According to a company statement, IndiGo posted a net profit of ₹549.1 crore for the third quarter, a steep fall from the ₹2,448.8 crore recorded in the same period last year. The decline highlights the challenges faced by the aviation sector amid operational disruptions and rising compliance-related costs.
The airline disclosed that it suffered a total impact of ₹1,546.5 crore during the quarter. Of this, ₹577.2 crore was attributed to large-scale flight disruptions experienced in early December, which affected schedules and passenger operations across the network. The remaining ₹969.3 crore impact was linked to the implementation of new labour laws, which increased employee-related expenses.
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IndiGo also said it was fined ₹22.2 crore by aviation authorities in connection with the flight disruptions. The airline did not provide further details on the specific violations but acknowledged that the penalty added to the overall financial strain during the quarter.
Despite the profit slump, IndiGo remains the country’s largest carrier by market share and continues to operate an extensive domestic and international network. Industry analysts note that airlines across India have been grappling with higher costs, regulatory changes, and operational challenges in recent months.
The company said it continues to focus on operational stability and cost management while navigating regulatory changes. IndiGo is expected to provide further clarity on its outlook and recovery measures in upcoming investor interactions and financial disclosures.
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