InterGlobe Aviation Ltd.FX-Driven Loss Masks Strong Operations

InterGlobe Aviation reported a full-year FY26 net loss of ₹23.9 billion, primarily driven by an unprecedented 11% rupee depreciation rather than operational weakness.

Excluding forex and exceptional items, the airline delivered an underlying net profit of ₹75 billion, demonstrating resilience despite volatile external conditions. Total income grew 6.4% to ₹895 billion, while the company served a record 123 million passengers. The December operational disruption cost ₹21-22 billion total, though recovery was achieved by Q4. Management is strengthening the balance sheet through accelerated aircraft ownership, deploying $820 million in FY26 for asset acquisition and maintaining strong liquidity of ₹516 billion total cash.

Looking ahead, Q1 FY27 guidance indicates 3-4% capacity growth with mid-teens PRASK improvement driven by pricing power and fuel charge pass-through. Willie Walsh joins as CEO in August 2026, bringing four decades of global aviation leadership. The fleet expanded to 441 aircraft with continued focus on A321 XLR international expansion while optimizing costs through damp-lease returns and selective route recalibration.