Financial Performance Overview
InterGlobe Aviation reported a dramatic reversal in profitability, posting a consolidated net loss of ₹23.94 billion for FY26 compared to a profit of ₹72.58 billion in FY25. This was primarily driven by exceptional items totaling ₹18.0 billion, comprising ₹12.2 billion from implementation of New Labour Codes effective November 21, 2025, and ₹5.8 billion from operational disruptions in December 2025 including customer compensation and DGCA penalties.
Revenue from operations grew 5.2% to ₹849.62 billion, with passenger services contributing ₹789.03 billion, cargo services ₹24.84 billion, and in-flight sales ₹13.23 billion. However, total expenses surged 19.8% to ₹896.8 billion, driven by a 47.8% increase in aircraft fuel costs to ₹253.9 billion, foreign exchange losses of ₹89.8 billion, finance costs of ₹58.9 billion, and depreciation of ₹108.1 billion.
Operational and Strategic Performance
The company maintained its operational leadership, carrying 123.37 million passengers (4% growth) across 787,741 flights (2% growth) with a load factor of 84.4%. The fleet expanded to 441 aircraft (36 owned, 332 finance lease, 20 operating lease, 53 damp lease) with an average age of 4.9 years. Network expansion added 14 new destinations (6 domestic, 8 international) totaling 142 destinations, including commencement of European operations to Athens and long-haul services to UK.
Key strategic initiatives included induction of 51 new Airbus A320neo family aircraft, becoming India's first airline to operate A321XLR aircraft, significant investments in MRO facilities, and digital transformation achievements including the 6Eskai AI assistant handling 1.54 million interactions and Level 4 IATA certification.
Corporate Governance and Compliance
The 23rd AGM is scheduled for August 20, 2026 via video conferencing. The Board comprises 9 members including 4 Independent Directors and 4 Non-Executive Directors, with key appointments including Mr. Vikram Singh Mehta as Chairman and Mr. Michael Gordon Whitaker as Independent Director.
The company faced regulatory challenges including ₹22.20 crore in DGCA penalties for December 2025 operational disruptions, which have been complied with through corrective measures. Auditors S.R. Batliboi & Co. LLP issued an unmodified opinion on the financial statements, highlighting key audit matters around passenger revenue recognition, lease accounting, and aircraft maintenance obligations.
Financial Position and Capital Structure
Total assets stood at ₹1.39 trillion, including property, plant and equipment of ₹110.9 billion (significantly increased due to ₹122.6 billion transfer from right-of-use assets from exercised purchase options), right-of-use assets of ₹520.5 billion, investments of ₹276.7 billion, and cash equivalents of ₹13.2 billion with additional bank balances of ₹226.8 billion.
Total liabilities included lease liabilities of ₹759.4 billion and other financial liabilities of ₹315.1 billion. Total equity decreased to ₹69.9 billion from ₹93.7 billion. The company maintained investment-grade credit ratings from Moody's (Baa3 stable), CRISIL (AA-/A1+), and ICRA (AA/A1+).
Sustainability and Future Outlook
Sustainability initiatives showed progress with GHG emission intensity reduced by 18.9% from FY2016 baseline to 60.5 gCO2 e/ASK, 86% fleet compliance with ICAO Chapter 14 noise standards, electric vehicle deployment at stations, and LEED Platinum certification for corporate office. The company continues to focus on network expansion, digital transformation, and operational efficiency despite challenging macroeconomic conditions including foreign exchange volatility and elevated fuel prices.