IndiGo Postpones Salary Increments For Senior Employees Due To Industry Headwinds

IndiGo has deferred salary hikes for its senior employees as the airline faces rising fuel costs and uncertainty in the aviation sector, InterGlobe Aviation Ltd. Chief Financial Officer Gaurav Negi said during the company’s earnings call on Thursday. The decision comes as India’s largest airline by market share navigates higher operating expenses and changing market conditions.

The airline’s management said it is taking steps to manage costs while adjusting capacity on selected domestic and international routes. Despite these short-term challenges, IndiGo maintained its fiscal 2027 capacity growth guidance, with plans for single-digit expansion and the possibility of early double-digit growth in subsequent periods.

IndiGo reported a consolidated net loss of Rs 238 crore for the first quarter of fiscal 2027, compared with a net profit of Rs 2,176 crore during the same period last year. However, the airline recorded a 20% year-on-year increase in revenue, reaching Rs 24,584 crore, supported by higher fares and improved passenger demand.

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IndiGo co-founder Rahul Bhatia said fuel expenses remain elevated in the near term and the operating environment continues to remain volatile. He added that the airline was able to pass on only a limited share of higher fuel costs to passengers. CFO Gaurav Negi said revenue performance improved during the quarter, with May emerging as the strongest month and June showing steady improvement in yields and international capacity.

The airline’s profitability was affected by rising expenses, with earnings before interest, taxes, depreciation, amortisation and rent (EBITDAR) falling 34% to Rs 3,889 crore. EBITDAR margin declined to 15.8% from 28.6% in the year-ago period. IndiGo’s fleet stood at 432 aircraft at the end of the quarter, nine fewer than the previous quarter.

Despite the weak financial performance, IndiGo management said demand conditions remain supportive, with stable passenger load factors and continued pricing discipline. The company said improving yields and better capacity management will help it navigate the challenging aviation environment while focusing on long-term growth plans.

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