IndiGo rises 4% as Q2 loss narrows, fares climb

ion Limited (INDIGO), the parent of IndiGo, rose as much as 4.15% to an intraday high of ₹4,869 on the NSE on October 30. The gain came after its Q2 FY27 consolidated net loss narrowed to ₹1,878.6 crore, from ₹2,581.7 crore a year ago. The results came out after market hours on October 29. Revenue grew about 26% year-on-year. The airline guided for passenger revenue per available seat kilometre (PRASK) to grow over 25% in Q3 and for FY27 as a whole. Cost per available seat kilometre (CASK), excluding fuel and forex, rose 14.6% to ₹3.45. Jefferies and Nomura kept their Buy ratings, while UBS stayed Neutral. Pricing power is the highlight. Nomura said the results show demand is strong enough to pass cost inflation on to passengers through higher fares. A PRASK growth guide above 25% signals that IndiGo expects fares to keep rising, which is unusual strength for an airline in a high-fuel-cost environment. The loss is narrower than last year but much wider than last quarter. In Q1 FY27, the net loss was just ₹238 crore. The jump to ₹1,879 crore partly reflects Q2 being a seasonally weak travel quarter. But costs are rising across the board, not just fuel. Non-fuel unit costs grew 14.6%, so the airline needs fares to keep climbing just to hold margins. If higher fares start to dent travel demand, that strategy gets harder to sustain. Investors should watch delivery on the 25%+ PRASK guidance, fuel prices, non-fuel cost growth, and passenger traffic trends in the festive and winter season. The key question is whether IndiGo can keep raising fares fast enough to return to profit without losing passengers. Disclosure: I do not hold any position in InterGlobe Aviation Limited. This post is for informational purposes only and is not investment advice.