IndiGo has deferred salary increments for its senior management employees after reporting a loss in the first quarter of FY27, citing continued pressure on profitability from rising fuel costs and an uncertain operating environment.
Speaking during the airline’s post-earnings call, Gaurav Negi, chief financial officer (CFO) said the planned salary revisions for senior-level employees had been put on hold and would be reviewed again after six months.
The decision follows parent company InterGlobe Aviation’s reporting of a consolidated net loss of Rs 238 crore for the quarter ended 30 June, compared with a profit of Rs 2,176 crore in the year-ago period.
Despite a nearly 20 per cent year-on-year increase in revenue from operations to Rs 24,584 crore, higher operating expenses weighed on earnings. Fuel costs remained the biggest challenge during the quarter, with aviation fuel expenses rising sharply amid geopolitical tensions in the Middle East.
The airline’s EBITDA declined 37 per cent year-on-year to Rs 3,267 crore, while EBITDA margins narrowed to 13.3 from 25.5 per cent a year earlier.
IndiGo said it is responding to the cost pressures through measures such as optimising aircraft deployment, controlling discretionary spending and maintaining pricing discipline where possible. The airline also plans to continue evaluating fare increases to partially offset higher operating costs.
While postponing salary hikes for senior management, the company said it remains focused on long-term growth and expects passenger demand to remain resilient despite near-term industry challenges.
