India’s largest airline, IndiGo, has deferred salary increments for its senior management after reporting a ₹238 crore net loss in the first quarter of FY27, citing rising fuel costs and continued industry uncertainty.
The decision was announced during the airline’s post-earnings call, where CFO Gaurav Negi said salary revisions for senior-level employees have been put on hold and will be reviewed again after six months. Despite reporting a nearly 20% increase in revenue to ₹24,584 crore, the airline’s profitability was significantly impacted by soaring operating expenses.
IndiGo’s parent company, InterGlobe Aviation, also reported declining EBITDA margins as fuel costs surged nearly 86% year-on-year, largely driven by geopolitical tensions in the Middle East. Co-founder Rahul Bhatia said aviation turbine fuel remains the airline’s biggest challenge, adding that only a portion of the increased costs could be passed on to passengers through higher fares.