Business
IndiGo Q3 Profits Drop 77% Due To Labour Costs, December Crisis
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IndiGo posted a 77.5 percent profit drop in Q3 FY26 due to new labour laws and December disruptions, but revenue rose 6 percent.
Looking ahead, the airline expects capacity (ASK) to grow around 10 percent in Q4 FY26.
IndiGo Share Price: InterGlobe Aviation, which operates IndiGo airline, reported a sharp drop in profits for the October–December quarter of FY26, largely due to one-time costs linked to new labour laws and a major operational breakdown in December.
The airline posted a consolidated net profit of Rs 549.8 crore in Q3 FY26, down 77.5 percent from Rs 2,448.8 crore recorded in the same quarter last year. Excluding exceptional items totalling Rs 1,546.5 crore, profit would have come in at Rs 2,096.3 crore, still reflecting a 14 percent year-on-year decline.
Revenue growth holds up despite disruption
Even as profits took a hit, IndiGo managed to grow its topline. Revenue from operations rose 6 percent YoY to Rs 23,471.9 crore, supported by higher capacity deployment. The airline continues to dominate India’s aviation market with close to two-thirds share.
During the quarter, capacity expanded 11.2 percent YoY, while passenger numbers increased 2.8 percent. However, operational stress showed up in performance metrics. The load factor slipped by 2.4 basis points to 84.6 percent, and yield declined 1.8 percent to Rs 5.33. Fuel cost per available seat kilometre (CASK) eased 2.8 percent to Rs 1.53, even as overall costs rose nearly 10 percent, with fuel expenses up 8 percent.
Labour codes trigger major one-time hit
A significant part of the earnings impact came from India’s newly implemented labour laws, which became effective on November 21. These rules mandate a standard definition of wages, including a requirement that basic pay account for at least 50 percent of total CTC, limiting the use of allowances to reduce statutory payouts.
As a result, IndiGo recorded a one-time exceptional loss of Rs 969.3 crore linked to the labour code transition.
December operational crisis adds pressure
The airline was also hit by severe disruption in early December, when large-scale flight cancellations and delays created chaos at major airports. The issue was driven mainly by crew shortages, especially pilots, following the rollout of revised Flight Duty Time Limitation (FDTL) norms, which require longer rest periods.
Industry estimates suggest the disruption affected over 3 lakh passengers. IndiGo booked a one-time loss of Rs 577.2 crore related to the crisis.
Regulator DGCA later imposed a Rs 22 crore penalty after the airline cancelled 2,507 flights and delayed 1,852 flights between December 3 and 5.
Operational metrics and outlook
For the quarter, IndiGo reported technical dispatch reliability of 99.9 percent. On-time performance at six major metros stood at 76.6 percent, while the cancellation rate was 1.03 percent.
Looking ahead, the airline expects capacity (ASK) to grow around 10 percent in Q4 FY26.
What the CEO said
Commenting on the quarter, IndiGo CEO Pieter Elbers acknowledged the operational challenges faced in December.
He said the airline regretted the inconvenience caused to passengers during the disruption period and thanked customers for their patience. Elbers also credited IndiGo employees for stabilising operations quickly and thanked government bodies and aviation authorities for their support.
Despite the setbacks, he noted that the airline served nearly 32 million passengers in the quarter and around 124 million passengers in calendar year 2025, adding that IndiGo’s long-term fundamentals remain strong, supported by fleet expansion and a growing domestic and international network.
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January 22, 2026, 18:37 IST
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Business
Spirit Airlines is in deal talks with investment firm Castlelake as struggling carrier seeks path forward
A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California.
Kevin Carter | Getty Images News | Getty Images
Spirit Airlines is in talks with alternative investment firm Castlelake for a potential takeover as the discount airline looks for a path out of bankruptcy, CNBC has learned.
Spirit filed for Chapter 11 bankruptcy protection last August for the second time in a year after its previous turnaround plan fell flat.
Fellow budget carrier Frontier Airlines had been in talks with Spirit over the years for a potential merger, including in recent months, but didn’t secure a deal, according to people familiar with the matter, who requested anonymity to speak about the discussions. The two had reached a deal four years ago but it was called off after a surprise all-cash offer from JetBlue Airways.
Spirit and Castlelake didn’t immediately respond to requests for comment.
It was not immediately clear if Spirit’s bondholders and Castlelake would reach a deal or what form it could take. Minneapolis-based Castlelake has been active for years in aviation finance. In August, it announced it was launching a new aviation lending arm, Merit AirFinance, with $1.8 billion in deployable capital.
Spirit in mid-December said it amended its agreement with creditors to receive another $50 million in funding immediately, a lifeline for the carrier. Further funding would be contingent on “further progress on a standalone plan of reorganization or a strategic transaction,” Spirit said Dec. 15. “Spirit is currently in active negotiations on each of these possibilities,” the company added.
In its fight for survival, Spirit has slashed flights, reduced its fleet and cut jobs to save money. Unions last year agreed to pay cuts for the carrier’s pilots and flight attendants. That amounted to $100 million in concessions, the Air Line Pilots Association said in a Jan. 13 open letter, urging bondholders to support Spirit’s restructuring and avoid a liquidation.
Dania Beach, Florida-based Spirit for years enjoyed largely steady profitability and enviable margins in the often-rocky airline industry. But things took a turn after the pandemic, when wages and other costs soared, customer preferences changed, and an oversupply of domestic flights drove down airfare. That was especially punishing for U.S.-focused carriers that don’t enjoy a buffer from plush first-class cabins and large credit card and loyalty program deals.
The carrier’s problems snowballed after a Pratt & Whitney engine recall grounded dozens of its Airbus aircraft starting in 2023 and the planned acquisition by JetBlue was blocked two years ago by a federal judge who ruled it was anticompetitive, leaving both carriers to fend for themselves against a backdrop where larger carriers dominate.
Spirit has been trying in recent years to win over higher-spending customers by offering roomier seats or bundled fares that include seat assignments and baggage, or allow for changes, to better compete with larger rivals whose profits have been buoyed big-spending customers post-pandemic.
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CRISIL Ratings projects gold-loan NBFC AUM to grow at 40 percent CAGR, surpassing Rs 4.0 lakh crore by March 2027, driven by record gold prices and regulatory support.
Gold-Loan NBFCs Eye Rs 4 Lakh Crore AUM as High Gold Prices Drive Demand
Assets under management (AUM) of non-banking financial companies (NBFCs) specialising in gold loans are expected to grow at a sharp pace over the next two years, driven by record gold prices, rising demand for secured credit and regulatory support.
According to CRISIL Ratings, gold-loan NBFC AUM is set to clock a compound annual growth rate (CAGR) of around 40% between the current fiscal and the next, crossing Rs 4.0 lakh crore by March 2027. This is significantly higher than the 27% CAGR seen between fiscals 2023 and 2025.
High gold prices boost lending capacity
CRISIL Ratings noted that gold prices surged nearly 68% in the first nine months of the current fiscal, touching record highs. This sharp rise has enhanced collateral values, allowing lenders to increase disbursements against the same quantity of gold.
At the same time, limited availability of unsecured credit has pushed borrowers to explore alternative funding sources. Gold loans, backed by physical collateral, have emerged as a preferred option due to quicker processing and easier access.
NBFCs expand footprint despite bank competition
To tap rising demand, both large and mid-sized gold-loan NBFCs are expanding their presence, even as competition from banks intensifies.
“Large gold-loan NBFCs, with an established brand image, are scaling up portfolios through existing branches,” said Aparna Kirubakaran, Director, CRISIL Ratings. She added that mid-sized players are following a dual strategy—expanding branch networks while also acting as loan originators for larger NBFCs and banks.
These efforts have lifted business per branch by around 40% over the last two fiscals. Average AUM per branch stood at about Rs 14 crore in the first half of the current fiscal, compared with around Rs 10 crore in FY24, CRISIL Ratings said.
Regulatory changes to support growth
On the regulatory front, revised loan-to-value (LTV) norms for lower-ticket gold loans, effective April 1, 2026, are expected to provide additional lending headroom.
CRISIL Ratings estimates that LTV for lower-ticket bullet loans could rise from the current 65–68% to around 70–75% after factoring in accrued interest. This will allow borrowers to access higher credit against the same gold collateral, further improving loan attractiveness.
Shift from unsecured to secured credit
Demand is also being driven by a structural shift away from unsecured lending. “Following asset quality issues and stricter regulatory action in unsecured lending, gold loans have emerged as a strong alternative,” said Prashant Mane, Associate Director, CRISIL Ratings.
However, CRISIL cautioned that managing risks—especially LTV discipline, gold price volatility, and operational controls—will be critical for sustainable growth.
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January 22, 2026, 16:45 IST
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UK government borrowing was significantly lower last month, due to more income from taxes and higher National Insurance Contributions outweighing spending, figures show.
In December government borrowing – the difference between public spending and tax income – was £11.6bn, the Office for National Statistics (ONS) said.
It is down £7.1bn – 38% – from the previous December, and lower than what many economists had predicted, but still higher than that borrowed in the same month in 2023.
Tom Davies, Deputy Director for the ONS public service division, said the fall was a result of “receipts being up strongly on last year whereas spending is only modestly higher”.
Despite the annual fall, the December 2025 figure was the tenth highest for the month since records began in 1993, without adjusting for inflation.
And it remains higher than December 2023, when borrowing stood at £8.1bn.
The figures show the government received £7.7bn more – an 8.9% rise – in taxes in December 2025 than it did in the same month in 2024.
This comprised increases in income tax, corporation tax, VAT and National Insurance contributions (NIC), the ONS said – with changes to the rate of NIC paid by employers coming into effect in April last year.
According to provisional estimates, borrowing over the financial year to December totalled £140.4bn, about £300m lower than the same period in 2024, the ONS said.
The borrowing figure was estimated as 4.6% of GDP – 0.2 percentage points down from the same period last year.
It was the third-highest level of borrowing over April-December on record, after those in 2020 and 2024.
Chief Secretary to the Treasury, James Murray, said the government was “stabilising the economy, reducing borrowing, rooting out waste in the public sector”.
He said: “Last year we doubled our headroom and we are forecast to cut borrowing more than any other G7 country with borrowing set to be the lowest this year since before the pandemic.”
Ruth Gregory, deputy chief UK economist at Capital Economics, said public finances were “finally showing signs of improvement in recent months”.
“What’s more, a further improvement in January is on the way. Those figures will probably show a bumper set of self-assessment tax and capital gains tax (CGT) receipts reflecting the freeze on income tax thresholds and a disposal of assets due to the speculation that Reeves would raise CGT.”
But she said the “big picture is that the pace of deficit reduction remains very slow”.
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