IndiGo Chief Executive Willie Walsh expressed confidence on 2 November 2026 that the airline's October–December quarter performance will remain strong, citing robust bookings even as surging fuel costs continue to pressure margins and push airfares higher.

Q3 Outlook and Demand Trends

'The picture for the third quarter remains positive,' Walsh said in a television interview, noting that bookings for the quarter are 'robust.' He added that the July–September quarter is historically the softest period for the aviation industry, and that airline chiefs globally are reporting similar recovery patterns heading into Q3.

Walsh acknowledged passenger sensitivity to fare increases but maintained that financial stability remains a priority. 'We understand that people would prefer to have lower prices. But obviously we have to have an eye on the financial stability of the company, and we're trying to absorb as much as we possibly can,' he said.

Fuel Costs: The Key Pressure Point

Walsh flagged fuel as the most significant headwind. Aircraft fuel costs surged 67.2 per cent to ₹9,966.8 crore in the September quarter, and Walsh warned the figure will climb further in Q3. 'Given the very significant increase in our fuel bill, up 67 per cent in the quarter, and it will be much higher again in the third quarter, that's clearly going to have an impact,' he said, adding that he does not expect this to be a permanent structural drag.

He drew parallels with global carriers, noting that US airlines face fuel cost increases of over 60 per cent — comparable to IndiGo's — while European carriers are relatively shielded due to stronger hedging positions. 'American airlines are recovering part of the increase, though all have lower profitability,' he observed.

IndiGo's September Quarter Results

IndiGo reported a consolidated net loss of ₹1,879.1 crore for the July–September 2026 quarter, narrowing significantly from a loss of ₹2,582 crore in the same period a year earlier. The improvement came even as fuel costs accelerated sharply, reflecting stronger passenger revenue and load factors during the period.

Following the results, Walsh indicated that further fare increases may be unavoidable if fuel bills continue to rise.

Long-Term Strategy Unchanged

Walsh contextualised the current fuel spike within historical precedent, citing the oil shocks of 2008 and 2022 — the latter triggered by Russia's invasion of Ukraine. 'Not many of them are long-term; things tend to stabilise again,' he said. He reaffirmed that IndiGo's strategic direction remains intact, with the airline's large aircraft order positioning it to capitalise on fleet expansion when new planes arrive. 'No change in our long-term strategy,' he remarked.

With demand holding firm and a narrowing loss trajectory, IndiGo's Q3 performance will be closely watched as the decisive test of whether the airline can convert strong bookings into a return to profitability.