IndiGo Parent Sees Earnings Cuts as Cancellations and Rupee Weakness Bite

n, the parent of IndiGo, is facing sharp earnings estimate cuts as widespread flight cancellations and a weakening rupee pile pressure on India’s largest airline. Since late November, IndiGo has cancelled hundreds of flights, with disruptions intensifying over the past few days and triggering chaos across major airports. Analysts warn the timing couldn’t be worse. December and March are typically IndiGo’s strongest quarters, and continued cancellations could dent quarterly revenue by 5–7 percent. The financial strain is already evident. The airline reported a steep net loss of ₹2,582 crore in Q2 FY26, compared to ₹987 crore last year, largely due to forex losses triggered by dollar-linked obligations. Lease costs surged more than tenfold as the rupee depreciated 1.7 percent, resulting in a ₹2,892 crore forex hit. Citi expects operations to stabilise within a month but cautions that rising aviation turbine fuel prices—up 10 percent since September—and further rupee weakness may continue to pressure margins in the typically strong third quarter. With fuel costs making up 27 percent of total expenditure and IndiGo’s vast network prone to cascading disruptions, analysts say profitability risks remain elevated in the near term.