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IndiGo Q1 results pressured by fuel costs as West Asia flare-up adds risk

Fuel costs jumped up to 86% year on year, pushing IndiGo deeper into losses despite a 20% rise in revenue.

Reported · Written up by our desk · Trade & Tariffs

LiveMint Markets reports that IndiGo’s June quarter results for Q1FY27 underscored how exposed the carrier is to higher crude oil prices, with costs rising faster than revenue. According to the report, Q1FY27 Ebitdar fell 33.0% year on year to ₹ 3,800 crore, mainly because fuel costs increased as much as 86.0% to ₹ 10,833 crore. The airline also cited rupee depreciation, which lifted other cost components by 11.0%, contributing to losses. The outlet said the easing of crude prices was expected to offer some relief, but a flare-up in West Asia has increased uncertainty. It noted that Nuvama Institutional Equities cut its FY27 and FY28 Ebitdar estimates by 10% and 9% after raising cost-per-seat metrics tied to higher fuel, with further developments expected after the new chief executive, Willie Walsh, takes over in early August.

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