IndiGo secures FY25 profit while other major Indian airlines report substantial

December 11, 2025 at 08:49 PM•2 min read

IndiGo was the sole major Indian airline to report a profit in FY25, contrasting with widespread sector losses.

Key Points

1IndiGo posted a Rs 7,253 crore profit in FY25, making it the only major Indian airline to achieve profitability while the sector reported Rs 5,289.70 crore in combined losses.
2Major rivals like Air India, Air India Express, and Akasa Air collectively reported billions in losses, highlighting widespread financial instability.
3IndiGo faced severe flight disruptions and a DGCA inquiry in FY25 due to non-compliance with pilot FDTL rules, despite its financial success.
4IndiGo maintains nearly 65% of the domestic market share, leveraging economies of scale for superior operational efficiency.

Indian market leader IndiGo reported a standalone profit of Rs 7,253 crore for the financial year 2024-25, making it the only major scheduled Indian airline to achieve profitability. This performance stands in stark contrast to the broader Indian aviation sector, which saw combined net losses widen to Rs 5,289.70 crore in the same period, according to data presented by the Ministry of Civil Aviation in the Lok Sabha. The challenging financial landscape persists despite a 7.7% growth in domestic passenger traffic, which reached 16.55 crore flyers in FY2024–25.

While IndiGo's profit declined from the previous fiscal year, its rivals faced substantial deficits. Tata Group-owned Air India recorded a loss of Rs 3,976 crore, with its low-cost subsidiary Air India Express reporting an even steeper deficit of Rs 5,832 crore. New entrant Akasa Air posted a loss of Rs 1,986 crore amidst its aggressive expansion, and Alliance Air lost Rs 691 crore. SpiceJet remained marginally negative. High operating costs, particularly for Aviation Turbine Fuel (ATF), significant debt burdens, and intense fare competition are cited as primary drivers for these sector-wide losses.

IndiGo's financial success in FY25 occurred despite a severe operational crisis earlier in the year. The airline experienced widespread flight disruptions and cancellations, stranding thousands of passengers, primarily due to its failure to comply with the Indian Directorate General of Civil Aviation's (DGCA) revised Flight Duty Time Limitation (FDTL) rules. The DGCA intervened, granting a temporary exemption while simultaneously ordering a reduction in IndiGo’s flight schedule and initiating an inquiry into its "mismanagement and planning failures."

With nearly 65% of the domestic market share, IndiGo leverages significant economies of scale and operational efficiencies that its competitors struggle to match. The Indian government has maintained that financial and operational decisions are the responsibility of individual airlines, reiterating that the deregulated sector, established in 1994, will continue to experience market-driven consolidation pressures.