Indian aviation could do much better if... : IndiGo CEO on airport charges, taxes

The Indian aviation market would perform much better if airport charges and taxes were lower, IndiGo CEO Willie Walsh said on Monday, amid a challenging operating environment for airlines due to elevated fuel prices and rupee depreciation.

The airline industry situation is challenging, but we will continue to navigate through challenges, Walsh said at his first in-person media briefing since taking charge as the chief executive in August.

Walsh said the airline expects to start getting the wide-body A350 aircraft from the second quarter of 2028.

The airline has all the ingredients to succeed in the long haul market, he said.

"We see incredible opportunities," he added.

His comments come at a time when the domestic aviation sector is facing pressure from higher operating costs and weakening passenger traffic.

The agency has also estimated that the aviation industry could incur losses of up to ₹38,000 crore in the financial year ending March 2027 and maintained a negative outlook for the sector, warning that a prolonged West Asia conflict could further affect passenger numbers and airline profitability.

Domestic air passenger traffic declined 6.5% year-on-year to 118.2 lakh in September, compared with 126.4 lakh in the year-ago month. Traffic was also down 2.5% sequentially from August.

In the first half of FY27, domestic passenger traffic fell 1.9% to 78.61 million.

International passenger traffic for Indian carriers contracted 19.3% during the same period, largely due to airspace restrictions and network disruptions amid the West Asia conflict.

Higher fuel prices and the depreciation of the rupee have added to the cost pressures.

While fuel accounts for around 30-40% of airlines' operating costs, several other expenses, including aircraft leases and maintenance, are linked to the US dollar.

IndiGo Q2 performance

IndiGo itself reported a net loss of ₹1,879.1 crore in the September quarter of FY27.

The airline's revenue from operations, however, increased 25.9% year-on-year to ₹23,364 crore in the July-September quarter, compared with ₹18,555 crore in the corresponding period last year.

Revenue declined around 5% sequentially from ₹24,584 crore in the June quarter.

Its EBITDA (earnings before interest, taxes, depreciation and amortisation) rose to ₹1,907 crore from ₹543 crore a year earlier, while the EBITDA margin expanded to 8.1%.

However, the improvement in operating performance was supported by a decline in foreign exchange losses, which more than halved to ₹1,333 crore from ₹2,892 crore in the year-ago period.

ATF expenses surged 67% year-on-year to ₹9,967 crore during the quarter, accounting for around 42% of revenue from operations against 32% in the corresponding quarter last year.

IndiGo CEO on transition to Navi Mumbai

IndiGo plans to commence international operations from Navi Mumbai in February 2027, transferring 12 daily international departures from Mumbai's Chhatrapati Shivaji Maharaj International Airport (CSMIA) and adding a daily service to Kathmandu.

As part of the transition, the airline will progressively transfer all its existing international operations from CSMIA to Bahrain, Riyadh, Dammam, Jeddah, Madinah, Kuwait, Ras Al Khaimah, Fujairah, Muscat, Dhaka and Jakarta.

IndiGo operates more than 2,100 flights daily and has an operational fleet of over 400 aircraft.