IndiGo Q3 profit falls 77% to ₹550 cr on labour code impact, December chaos

IndiGo said that the new codes resulted in an incremental cost of ₹969.3 crore, while the operational disruptions in December 2025 led to a cost of ₹550 crore

InterGlobe Aviation, the parent company of India's largest airline operator, IndiGo, on Thursday reported a 77.6 per cent drop in its consolidated net profit to ₹549.8 crore in the third quarter of the financial year 2025-26 (Q3FY26). During the same period last year, the airline recorded a profit of ₹2,448.8 crore. 

The deep dive in profit was primarily driven by the implementation of new Labour codes and cost incurred due to thousands of flight cancellations in December 2025, the company said in a BSE filing. It added that the new codes resulted in an incremental cost of ₹969.3 crore, while the December chaos led to a cost of ₹550 crore.   "These disruptions led to a material reduction in passenger revenue during the affected period. To restore operations, the company rebooted its network and systems and repositioned crews, steps that later enabled it to operate more flights with improved stability," the company said about the operational disruptions caused by its lack of preparedness to implement the new Flight Duty Time Limitations (FDTL) rules. 

Apart from the ₹550 crore cost, the Directorate General of Civil Aviation (DGCA) also imposed a ₹22 crore penalty on the airline operator and also directed it to furnish a bank guarantee of ₹50 crore, the company said.