InterGlobe Aviation

“Moving to our outlook for the third quarter of this financial year, we expect capacity to grow in the early single digit year-on-year.”

“For the full financial year 2027, we expect capacity to grow in the early single digits.”

“On the cost side, we expect CASK ex fuel ex forex MTM to increase in the high single digits to early double digits range, largely reflecting the impact of rupee depreciation in addition to the usual escalations.”

“So we think load factors in the third quarter, and remember, it is seasonally stronger, will be flat during the quarter based on our current position and forward bookings that we're witnessing at the moment.”

“But at this stage, I'm happy to stick to the long-term guidance. I don't see any change in our long-term approach to the business.”

“We are still committed to the fleet orders that we have and looking forward to taking delivery in 2028 of the A350.”

“In response, we acted decisively to rationalize capacity across parts of our network.”

“The capacity outlook reflects the conclusion of our damp-leased widebody operations, the prevailing geopolitical environment and our disciplined approach to capacity deployment.”

“We're uniquely positioned in having fleet and aircraft deliveries that are well positioned over the next few years that gives us the opportunities to grow.”

“So we can and we have played with utilization as we've gone through this year, and we will continue to look at that.”

“Our cargo business is also performing well, delivering strong revenue growth of 37 percent year-on-year during the quarter.”

“And fourth, to build our international footprint in a measured way, taking advantage of the capabilities of the XLRs and A350s while preserving the strengths of our low-cost model.”

“It will be more international in the third quarter. As you know, the third quarter is very strong in the Indian domestic market given the festive season.”

“We see opportunities to generate additional revenues through the premium product that we've introduced. Now in the second quarter, it's small. We'll be growing on this.”

“And we believe that there is scope for us to increase our average ancillary revenue per passenger as well as we go forward.”

“Second, the quarter reflected a measured and disciplined approach to capacity in a period of seasonally softer demand, with seat deployment across the industry approximately 5 percent lower year-on-year.”

“But demand has held up pretty well. And obviously, we're going into a much stronger quarter with Q3 and I haven't seen anything in the figures to date that would suggest there's an issue there.”

“But we do see much stronger demand in the third quarter to the seasonally soft second quarter that we've just come out of.”

“On the revenue side, the environment remains supportive, with pricing continuing to reflect the higher cost backdrop and the base impact from last year.”

“But the bottom line, and we've been saying this very publicly; there's no way you can avoid increases in fares when you see such significant increases in the fuel price. It's inevitable that the fuel price will ultimately get passed through to consumers.”

“In terms of profitability, EBITDAR came in at 25 billion rupees, at a margin of around 11 percent, compared to an EBITDAR of 11 billion rupees and a margin of 6 percent for the same period last year.”

“On a like-for-like basis, excluding the impact of MTM and hedging, EBITDAR margin declined by 5 percentage points, largely driven by fuel and cost escalations.”

“Yes. On the wide-body removal, we expect it to be accretive to spreads.”

“First, fuel costs remained elevated. The benchmark Singapore jet fuel index was 60 percent higher than Q2 last year. This increase, along with the rupee depreciation, flowed directly through to our cost base, a 69 percent increase in our fuel CASK.”

“Turning to our cost performance, CASK ex fuel ex forex MTM came in at INR 3.45 for the quarter, approximately 15 percent higher year-on-year.”

“Turning to the balance sheet, we continue to maintain a strong liquidity position, ending the quarter with total cash of 527 billion rupees, comprising free cash of 399 billion rupees and restricted cash of 128 billion rupees.”

“As this is my first earnings call as CEO of IndiGo, I thought I would start by sharing a few thoughts from my first few months with the business.”

“With that, let me hand over to Kiran, our new Chief Financial Officer, who will take you through the financial performance in more detail.”

“the ability to generate additional revenues through a structured program there, and we brought in a new leadership there, very encouraged by the early developments”

“I think there is a little bit of accounting grouping play over here to the tune of about INR178-odd crores.”

“The global aviation industry continues to face uncertainty, particularly from geopolitical events, which are affecting travel patterns, operating costs and, in some cases, the way airlines operate their networks.”

“Obviously, like every airline, there are some delays to the delivery schedules from Airbus.”

“No, we don't see that at this stage. I think if there is a price stabilization fund that makes sense for us to participate in, then we'll clearly look to do that.”

“I suppose what has hit us a bit harder than particularly the U.S. carriers who are also unhedged, has been our depreciation of the rupee against the dollar.”

“No, I think the issue there is there's a clear conflict of interest in terms of an airport that owns an airline and slot distribution. And I would expect regulators to look very closely at that.”

“For the quarter ended 30 September 2026, we reported a net loss of 19 billion rupees, compared to a loss of 26 billion rupees in the same quarter last year.”

“Excluding the MTM and hedging impact, we reported a net loss of around 7 billion rupees, compared to a net profit of around 1 billion rupees in the same period last year.”

“Moving on to the headline numbers, we reported a total income of 243 billion rupees, representing a growth of 24 percent year over year, with a yield growth of over 34 percent and a 2-percentage point reduction in load factor.”

“In this volatile environment, we considered it economically prudent to conclude our widebody damp-lease operations with effect from 1st November.”

“our domestic ASKs were broadly flat and our international ASKs were down about 2.9%.”