Indigo Future Outlook: Management cuts growth guidance to single digit from double digit

Synopsis: IndiGo has lowered its Q3 FY26 capacity growth guidance from high teens to high single-digit to early double-digit levels after widespread flight cancellations and the 10% DGCA-mandated winter schedule cut is expected to further impact Q3, Q4 and possibly FY26 performance. Let us see what more the company has to say about the guidance cut. 

The shares of this company, which is India’s largest passenger airline operating as a low-cost carrier. Serving several destinations, including the international spots, is back in the spotlight, as the management has now stepped in with its guidance cut for the upcoming quarters after the long-stretching flight cancellation chaos that has been going on for the past month. 

With a market cap of Rs 1,86,365 crore, the shares of Interglobe Aviation Ltd reached a low of Rs 4,642 compared to its previous day’s closing price of Rs 4808.35, giving a fall of 3.5% in today’s trading session. The shares have given a return of 179% over the last 5 years and are trading at a PE of 36.6, whereas their industry PE is 19.3.

About the Guidance cut 

IndiGo has sharply revised its Q3 FY26 guidance after a week of major operational disruptions that resulted in thousands of flight cancellations. The airline now expects average seat kilometre capacity growth (ASKs), an important metric used by airlines to measure their passenger carrying capacity, to be between high single-digit and early double-digit levels, compared to its earlier projection of high-teens growth, reflecting the impact of reduced flying and operational strain.

Alongside this, IndiGo has also cut its passenger unit revenue outlook, called PRASK, shifting from an expectation of flat to slight growth to a mid-single-digit decline. The cancellations have weakened yields, and disruption-related costs have put pressure on revenue performance for the quarter, materially altering IndiGo’s near-term financial expectations.

The situation has been further tightened by the DGCA’s directive mandating a 10% reduction in IndiGo’s winter schedule, which limits capacity recovery and is expected to affect Q3, Q4, and possibly FY26. Overall, the guidance cut highlights slower growth, softer revenues and a notable financial impact stemming from the operational breakdown.

Financials and more. 

The revenue from operations for the company stands at Rs 18,555 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 16,970 crores, growing by about 9 percent YoY. However, the net loss stood at Rs 989 crore in Q2 FY25, increasing to Rs 2,614 crore in Q2 FY26.

IndiGo stands as India’s largest and most preferred passenger airline and one of the fastest-growing in the world. Its success comes from a straightforward philosophy, keep fares affordable, run flights on time, and offer travellers a warm, hassle-free experience across a network that’s hard to match. The airline proves that low cost doesn’t have to mean low quality, and this approach has helped it build enormous trust with customers.

With a fleet of 400+ aircraft, IndiGo operates over 2,200 flights every day, connecting 130+ destinations, including 40+ international cities. In the last year alone, more than 118 million passengers flew with IndiGo, showing the scale at which it serves India’s growing aviation market. Strong on-time performance and one of the highest customer NPS scores in the country underline how deeply reliability is built into its operations.

Looking ahead, IndiGo is steadily spreading its wings beyond India. While it has long been the country’s dominant domestic carrier, the airline is now expanding internationally with the ambition to become a global aviation leader, one built on efficiency, consistency, and a customer-first mindset.

Written by Leon Mendonca. 

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