IndiGo, India's largest airline, reported a smaller net loss for the September quarter of FY27, although elevated aviation fuel prices and a weaker rupee continued to put pressure on its financial performance. InterGlobe Aviation, the parent company of IndiGo, recorded a net loss of Rs 1,879.1 crore in the quarter ended September 2026, compared with a loss of Rs 2,582.1 crore in the corresponding period last year. Despite the improvement, rising operating expenses remained a significant challenge for the airline. The company's total income increased to Rs 24,311.9 crore during the quarter from Rs 19,599.5 crore a year earlier, according to its regulatory filing. However, expenses climbed at a substantial pace, limiting the benefit of higher income. Total expenses for the September quarter rose to Rs 26,188.4 crore, while aircraft fuel expenditure surged 67.2 per cent year-on-year to Rs 9,966.8 crore. The airline attributed the pressure on profitability to exceptionally high fuel costs and rupee depreciation, which increased the burden on its operations. IndiGo reported an increase in total income of more than Rs 4,700 crore compared with the year-ago quarter, reflecting stronger revenue performance despite a challenging operating environment. CEO Willie Walsh Flags Fuel Costs And Geopolitical Uncertainty IndiGo CEO Willie Walsh said the September quarter was seasonally soft and was marked by unusually high fuel expenses and continuing geopolitical turmoil. The airline responded by adjusting its capacity and managing fares to protect revenue, although these steps could not fully counter the increase in costs. "We responded with prudent capacity reduction and yield management, supporting strong revenue performance but only partially offsetting the higher costs. Despite these actions, the quarter resulted in a net loss of around 19 billion rupees," he said in a release. The comments highlight the difficulties airlines face when operating expenses rise faster than revenue, particularly during a seasonally weaker period. IndiGo reduced its capacity during the quarter as part of its response to the challenging business environment. Capacity, measured in available seat kilometres (ASKs), declined 1 per cent to 40.8 billion. The number of passengers carried also fell 4.7 per cent year-on-year to 27.5 million during the September quarter. For the December quarter, the airline expects capacity, measured in ASKs, to increase by low single digits compared with the same period last year. The anticipated increase suggests that IndiGo intends to resume measured capacity growth while continuing to monitor operating costs and market conditions. IndiGo Focuses On Cost Discipline And Long-Term Growth