IndiGo Reports 78% Profit Decline After December Flight Disruptions and Labour Code Costs

IndiGo reported a 77-78% decline in Q3 net profit to around Rs 549 crore, primarily due to a Rs 577 crore exceptional loss from December flight cancellations and a Rs 969 crore provision linked to new labour code implementation. The airline cancelled over 2,500 flights amid pilot shortages and regulatory changes, prompting a Rs 22 crore fine and a 10% cut in its winter schedule by DGCA. IndiGo is conducting an internal review and cooperating with authorities, while the government has asked other airlines to apply for IndiGo's vacated slots. Compensation and refunds to affected passengers are underway, with the Delhi High Court monitoring progress and requiring affidavits on payouts and operational reforms.