IndiGo profit drops 20% in Q1 as travel caution follows AI crash, geopolitical tensions
'In June, as the booking trend and passenger cancellations were beginning to normalise we had a tragic AI171 accident. This led to a caution in travel sentiment, particularly on the international side,' said IndiGo CEO Pieter Elbers during a post-results call with analysts.
The air crash was not an isolated factor though, and was followed by West Asia conflict that resulted in over 100 flights being cancelled over two days. In May there had been cancellations due to border tensions with Pakistan as well as re-routings for West-bound flights due to the closure of Pakistan airspace.
Despite the headwings the passenger numbers crew by around 6% industry-wide, while IndiGo recorded more than 10 lakh passengers reflecting a 12% growth over previous year.
'A double digit growth during a turbulent quarter speaks volumes about the strength of our network and the relevance of our offering,' the CEO added.
The airline's total income for the quarter-ended June 2025 was ₹21,542 crore , an increase of 6.4% over the same period last year. Total expenses for the same quarter were ₹19,231 crore, an increase of 10.2% for the same comparative period.
IndiGo had a total cash balance of ₹49,405 crore comprising ₹34,801 crore of free cash and ₹14,603 crore of restricted cash.
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