New Delhi, Jan. 22 -- IndiGo scaled back its near-term growth expectations significantly after its October-December quarter earnings came under pressure from a combination of new labour codes, regulatory action, and severe operational disruptions in December.

India's largest carrier reported a 78% year-on-year (y-o-y) drop in consolidated profit to Rs.549 crore for the third quarter of fiscal year 2026 (FY26), its weakest performance in four years, even as its top management remained positive on normalisation of operations and visible headwinds.

The Q3 slump was driven by exceptional costs of Rs.1,546.5 crore stemming from the implementation of the new labour codes, and compensation paid to passengers during a week-long bout of flight c...