Fuel price hikes to be passed on, says IndiGo

New Delhi: The hike in jet gasoline costs will be passed on to each home and worldwide customers as elevated airfares, IndiGo stated Friday after flying into the crimson with a lack of Rs 2,537 crore within the fourth quarter of the 2026 fiscal, in contrast to a revenue of Rs 3,067 crore in the identical interval final yr.Whereas jet gasoline costs for worldwide flights have greater than doubled since pre-war days, for home, the hike has remained capped. If the cap is lifted even marginally subsequent week, home flights – with their schedule truncated – will value extra.After being within the black for 2 years, IndiGo reported a lack of Rs 2,394 crore in FY 26, in contrast to a revenue of Rs 7,258 crore in FY 25.The loss was attributed to “exceptionally sharp rupee depreciation, adjustments in labour legal guidelines and a difficult working setting” referring to airspace closures and jet gasoline costs, amongst different issues. The airline’s scrip closed 3.5% decrease at Rs 4,405.95 on BSE Friday, when the broader market had tanked 1.4%. IndiGo is now finding out whether or not gasoline hedging can be an choice in present volatility.IndiGo MD Rahul Bhatia stated: “FY26 was marked by an exceptionally difficult working setting, which materially impacted our profitability. Regardless of these circumstances, the underlying efficiency of the enterprise remained resilient. Throughout the yr, our capability grew by 9.5% and whole revenue elevated by over 6%. Excluding the affect of overseas alternate and distinctive gadgets, IndiGo delivered a revenue of Rs 7,500 crore.”In FY 26, Indigo suffered a success of Rs 8,100 crore due to the rupee crashing, of which Rs 4,200 crore affect was in This autumn alone. Final Dec flight disruption value the airline one other Rs 580 crore and the modified labour regulation’s affect was Rs 1,200 crore. “We proceed to keep a powerful stability sheet with substantial liquidity, demonstrating resilience by way of extended intervals of volatility… Whereas the close to time period stays risky, we stay firmly centered on disciplined execution, value effectivity, and long-term worth creation,” Bhatia added.Indigo airways had a complete money stability of Rs 51,650.6 crore as on March 31, 2026. And on that date, its whole debt (together with capitalised working lease legal responsibility) was Rs 77,749.2 crore.Relating to flight cuts, he stated: “…As we enter a seasonally softer demand setting from mid-June onwards, mixed with elevated gasoline costs, we’re adopting a measured method to optimise capability. As part of this, selective recalibration of sure routes is warranted to defend margins, as was performed final yr as properly.”Relating to the disaster of final Dec operational disaster which affected lakhs of flyers, MD Rahul Bhatia stated: “Not solely did the Dec disruption trigger a big affect on our outcomes, what transpired fell wanting the requirements we set for ourselves once we started this journey in 2006. Our clients deserve higher… I’m grateful to the 12.3 crore clients who selected to fly with IndiGo through the monetary yr, for his or her persistence, understanding, and continued belief through the disruption. On the identical time, it is vital to acknowledge the extraordinary professionalism, resilience, and sense of accountability demonstrated by our frontline colleagues and operational groups in exceptionally demanding circumstances, their dedication and dignity underneath strain really displays the spirit of IndiGo.”