IndiGo flight cancellations: As IndiGo’s nationwide flight cancellations dominate the headlines, they have created chaos for passengers. Weddings, meetings, and other important plans were either cancelled or moved online during what many are calling an unprecedented “disaster.”
According to InterGlobe Aviation Ltd data on the last six trading sessions, the ongoing disruptions and flight cancellations at India’s biggest airline, IndiGo, have wiped off around Rs 25,000 crore in the market capitalisation. The InterGlobe Aviation stock has fallen for six straight sessions, plunging 10.6 per cent. Here is a look at IndiGo’s profits and its business model.
How profitable is IndiGo?
According to a Mint report, IndiGo’s losses became bigger in the July–September quarter of the 2025–26 financial year. Quoting the company’s consolidated financial statements, the report says that the airline lost ₹2,582 crore in this period, which is 161% more than the ₹987 crore loss it had in the same quarter last year.
Even though IndiGo’s main business revenue went up by 9.3% in the second quarter — from ₹16,969 crore last year to ₹18,555 crore this year — the airline still ended the quarter with a net loss. This happened mainly because its foreign exchange costs rose sharply, jumping from ₹240 crore last year to ₹2,892 crore this year. These high costs increased the airline’s total expenses so much that the rise in revenue could not cover them, leading to a bigger overall loss.
Indian aviation market data
According to Statista, as of September 2025, IndiGo held a 63% share of the Indian aviation market. Tata Group-owned Air India had a 13.6% share, Air India Express accounted for 6.3%. The International Air Transport Association (IATA) released in June 2025 showed that by the end of 2024, IndiGo was India’s largest airline by seat capacity, with a 53.4% share. Air India followed at 12.1%, Air India Express at 8.6%, Vistara (now part of the Air India Group) at 6.9%, and SpiceJet at 3.5%. IATA’s next data release in December 2025 is expected to provide updated figures.
Market-cap & business model
Mint report says that, according to CompanyMarketCap data as of December 5, 2025. Indigo’s market capitalisation (M-Cap) recorded a 215% jump to its current level of ₹2.076 trillion over the last five years. In 2020, it was ₹665.77 billion.
A low-cost airline charges less for its basic ticket than other airlines. It does this by reducing some services for passengers. In return, travellers pay a lower price than they would on a full-service airline. The company operates on a leasing-based model- IndiGo uses planes that it leases instead of owning them. This gives the airline more flexibility. It also avoids the risk and cost of owning expensive planes that lose value over time.
