IndiGo has postponed salary increments for its senior management following a loss in the first quarter of FY27, as the airline continues to face profitability pressures from rising fuel prices and an uncertain business environment.
During the airline’s post-earnings conference call, Chief Financial Officer Gaurav Negi announced that the planned salary revisions for senior-level employees have been deferred and will be reviewed after six months, depending on the company’s financial performance.
The decision comes after IndiGo’s parent company, InterGlobe Aviation, reported a consolidated net loss of ₹238 crore for the quarter ended June 30, 2026, compared with a net profit of ₹2,176 crore in the corresponding quarter last year.
Despite recording a nearly 20% year-on-year increase in revenue from operations to ₹24,584 crore, the airline’s earnings were impacted by rising operating expenses. Aviation turbine fuel (ATF) costs remained the biggest challenge, increasing significantly due to geopolitical tensions in the Middle East.
The airline’s EBITDA fell 37% year-on-year to ₹3,267 crore, while its EBITDA margin narrowed to 13.3%, down from 25.5% in the same period last year.
To manage rising costs, IndiGo said it is focusing on optimising aircraft utilisation, reducing discretionary expenditure, and maintaining pricing discipline wherever possible. The airline also plans to evaluate fare increases to partially offset higher operating expenses.
While salary revisions for senior management have been put on hold, IndiGo reaffirmed its commitment to long-term growth and expressed confidence that passenger demand will remain resilient despite the current challenges facing the aviation industry.
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