IndiGo Faces Turbulence: Profit Plummets Amidst Flight Chaos and New Labour Code

India's largest airline, IndiGo, reported a significant 78% drop in net profit for the December quarter due to flight disruptions and new labour laws. Despite the challenges, the airline posted a total income increase and maintained strong fundamentals with an expanding fleet and network.

IndiGo, India's leading airline, reported a substantial decline in its December quarter net profit, reflecting a 78% reduction from the previous year. The downturn is attributed to severe flight disruptions and the effects of the newly implemented labour code, which significantly impacted earnings.

The airline's net profit for the third quarter stood at Rs 549.1 crore, a sharp fall from Rs 2,448.8 crore recorded in the same period last year. The company cited a Rs 1,546.5 crore hit due to operational disruptions and compliance with new labour regulations.

IndiGo faced operational hurdles, leading to massive cancellations and delays between December 3 and 5, which affected over three lakh passengers. Despite these challenges, the airline maintained a strong income growth and assured operational stability by mid-February after regulatory interventions.

(With inputs from agencies.)