May 29 (Reuters) - India's IndiGo expects its capacity growth to slow to around 3% to 4% in the first quarter of fiscal 2027 after the airline posted a quarterly loss, hit by reduced capacity, a weaker rupee, and rising fuel costs.
The carrier reported capacity growth of 16.4% in the first quarter of 2026.
IndiGo, which controls more than 60% of India's domestic market, cut domestic capacity by 10% under regulatory orders and faced widespread cancellations in December during one of the country's worst aviation crises.
The airline reported a foreign-exchange loss of 48.82 billion rupees for the quarter, compared with a gain of 1.38 billion rupees a year earlier.
More than 60% of IndiGo's costs are linked to the dollar, and a weaker rupee pushed up its overall expenses.
Surging fuel costs amid the Iran war dented the company's margins.
IndiGo does not hedge fuel, leaving it exposed after Middle East tensions pushed crude oil above $100 per barrel.
"While the near term remains volatile, we remain firmly focused on disciplined execution, cost efficiency, and long-term value creation," Managing Director Rahul Bhatia said in a statement.
IndiGo reported a net loss of 26.62 billion rupees ($280.2 million) for the quarter ended March 31, compared with a profit of 30.73 billion rupees a year earlier. Revenue rose 1.3% but was outpaced by a nearly 31% jump in expenses.
($1 = 95.0000 Indian rupees)
Reporting by Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee
Source: Reuters