IndiGo posts Rs 1,879-crore loss as high fuel costs, geopolitical woes hit; capacity cuts & yield management offer only partial relief, says CEO Willie Walsh

IndiGo guided for low single-digit capacity growth in the December quarter, while strong ticket prices would boost passenger revenue by more than 25%. Walsh said while fares will stay elevated during the current festive quarter, occupancy may remain flat. "We have no choice but to look to increase fares in an effort to offset the very significant increase that we have seen in the fuel bill," he said. IndiGo will also look at rationalising flights to limit the impact of prevailing higher fuel prices. "We remain mindful of immediate challenges, but pricing remains strong," he said. "We are looking at a network on a flight-by-flight basis to arrive at a decision."

Data from aviation analytics firm Cirium showed IndiGo will operate 1.6% less seats this quarter compared to last year. The October to December quarter is considered a peak period for airlines as it comprises major festivals such as Diwali and Christmas besides New Year travel. Walsh said that IndiGo doesn't have any plan to go slow on taking delivery of new planes as it remains bullish on strong demand returning in the long term.

IndiGo will also continue its long-term international expansion plans. The airline expects to introduce its first Airbus A350 into service in the second or third quarter of 2028. "We're not going to delay any of our longer-term plans because of what we're seeing in the fuel price at the moment," he said.

Walsh said Indian carriers need to capture a larger share of the country's international market, citing scale of traffic through major global hubs. "We will continue to invest for the future," he said. "The airline sees India's long-term aviation opportunity as compelling, with priorities centred on safe and reliable operations, rigorous cost discipline and disciplined growth that creates sustainable value."