InterGlobe Aviation Reports Narrower Net Loss of ₹1,880 Crore in Q2FY27 on Stronger Realisations

NEW DELHI — InterGlobe Aviation, the operator of airline brand IndiGo, has reported its financial performance for the second quarter of fiscal 2027, delivering results that surpassed earlier estimates despite persistent operational headwinds.

During the quarter, the company's revenue grew 26 per cent year-on-year to reach ₹23,360 crore. This top-line growth was supported by a 34 per cent year-on-year increase in yield, which rose to ₹6.30. Operating metrics showed a decline in total passengers by 5 per cent, while available seat kilometers (ASK) fell by 1 per cent.

EBITDA for the quarter stood at ₹1,880 crore, performing significantly better than initial estimates of ₹630 crore. Consequently, the net loss for the period was recorded at ₹1,880 crore, which was narrower than the anticipated estimate of ₹3,070 crore. Analysts attribute this variance to stronger realisations and a stronger-than-expected operating performance.

A notable development during the quarter was the movement in fuel expenses. Despite elevated fuel prices and the withdrawal of the ATF price cap, fuel cost per ASK declined by 2 per cent quarter-on-quarter. This unexpected decrease in unit fuel costs provided relief against broader cost pressures, although capacity rationalisation amid high fuel prices, rupee depreciation, and geopolitical uncertainty weighed on passenger growth and limited fixed-cost absorption.

Looking ahead, management has projected passenger revenue per available seat kilometer (PRASK) growth of over 25 per cent in the third quarter of fiscal 2027. Capacity growth is expected to remain in the early single digits, with load factors projected to stay broadly flat year-on-year.

Market observers maintain a constructive view on the stock, citing the airline's market position, scale, and pricing flexibility. Earnings are expected to improve gradually as fuel-cost pressures ease and capacity deployment normalizes, though the pace of recovery remains closely tied to fuel price volatility, currency movements, and demand trends.

"InterGlobe Aviation's Q2FY27 performance highlights how strong yield improvements and operational resilience can buffer a business against macroeconomic headwinds like high fuel prices and currency fluctuations. While the company still posted a net loss, narrowing it significantly below expectations demonstrates effective cost management and pricing flexibility. For businesses navigating volatile cost environments, focusing on unit economics and operational efficiency remains critical to protecting margins during periods of capacity rationalisation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes