India’s largest airline IndiGo on Monday reported a moderate 5.5 per cent year-on-year growth in air traffic for January 2026, indicating a slowdown in momentum. The airline’s passenger load factor declined by 250 basis points compared to the previous year, settling at 87.8 per cent, reflecting softer demand conditions.

Despite the subdued operational metrics, IndiGo reaffirmed its guidance of 10 per cent growth for the fourth quarter. Investor sentiment remained positive, with shares of IndiGo rising 1.82 per cent to trade at Rs 4,658.80, outperforming the broader NSE Nifty 50 index, which gained just 0.42 per cent during the session.

Market analysts continue to remain largely optimistic on the stock. Of the 27 analysts tracking the airline, 22 have maintained a ‘buy’ rating, while three recommend a ‘hold’ and two suggest a ‘sell’. According to Bloomberg data, the average 12-month price target of Rs 5,703.65 implies a potential upside of over 22 per cent.

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IndiGo CEO Pieter Elbers recently reiterated the airline’s aggressive expansion strategy, particularly in international markets. The carrier aims to deploy nearly 40 per cent of its capacity overseas and operate more than 4,000 daily flights, including domestic services, by the end of the decade. Currently, IndiGo operates over 2,200 daily flights with a fleet of 440 aircraft.

Elbers further stated that the airline plans to carry 200 million passengers annually and serve more than 4,000 routes by 2030. IndiGo has placed orders for nearly 900 aircraft, including 39 A321 XLRs, underscoring its long-term growth ambitions. In 2025, the airline carried 124 million passengers.

However, recent financial performance has been under pressure. IndiGo reported a sharp 78 per cent decline in net profit for the December quarter at Rs 549.1 crore, impacted by flight disruptions and the implementation of new labour laws. The airline incurred exceptional losses of Rs 1,546.5 crore during the quarter, even as total income rose to Rs 24,540.6 crore, highlighting the challenges alongside its growth trajectory.

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