New Delhi, July 31 -- InterGlobe Aviation Ltd, which runs IndiGo airlines, has had a wobbly start to FY26, although that was not unexpected. The June quarter (Q1FY26) began on a strong note but was soon marred by external headwinds, including geopolitical tensions, airport closures, conflict in West Asia and the tragic Air India 171 crash. This triggered caution among travellers and led to increased cancellations.

Sure, cost efficiencies offered some cushion to IndiGo. Fuel costs declined in Q1, benefiting from the lower crude oil prices, reduced deployment of fuel-inefficient damp-leased aircraft and some pricing negotiations with oil marketing companies. Cost per available seat kilometre (Cask) fell about 7% year-on-year in Q1. IndiGo'...