$INDIGO

India’s leading airline, IndiGo, has signaled a cautious approach to capacity expansion in the coming months as travel demand moderates amid ongoing geopolitical uncertainties in West Asia. The carrier expects a modest increase in capacity during the first quarter of FY27, while noting that passenger bookings showed signs of recovery in May after a sluggish start to the quarter. The airline faced disruptions across several international routes, particularly in the Middle East and Europe, prompting temporary aircraft redeployment to domestic operations. IndiGo has already restored a significant portion of the affected capacity and anticipates a full normalization by the end of June. At the same time, the company plans to gradually retire several damp-leased aircraft to improve fuel efficiency and reduce operating costs. Despite carrying over 123 million passengers during FY26 and maintaining a strong route network, the March quarter was impacted by currency fluctuations, higher fuel expenses, and flight disruptions, resulting in a quarterly loss. To mitigate future risks, IndiGo has expanded its foreign exchange hedging strategy and remains committed to its fleet expansion plans without delaying aircraft deliveries.