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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Intellia Therapeutics, building exterior and company sign, Cambridge, Massachusetts, USA.
Spencer Grant | Universal Images Group | Getty Images
Intellia Therapeutics said its Crispr-based treatment for a rare swelling condition met its goals in a late-stage trial, marking a milestone for the field of gene editing and putting the company on track to seek approval from the U.S. Food and Drug Administration.
The company’s treatment uses Nobel Prize-winning technology Crispr to edit DNA and turn off the gene that controls production of a peptide that’s overactive in people with hereditary angioedema, causing them to experience potentially life-threatening swelling attacks. Intellia’s treatment is administered once through an hourslong infusion, making the edits directly in the liver.
Intellia said the one-time treatment reduced attacks by 87% compared with a placebo, meeting the study’s main goal. Six months after treatment, 62% of patients were free from attacks and weren’t using other therapies, Intellia said.
The company described the safety and tolerability of the treatment as “favorable,” reporting the most common side effects were infusion-related reactions, headaches and fatigue. Analysts were closely watching safety in the trial since a patient in a separate trial of a different treatment from Intellia died. That patient developed a liver injury and ultimately died from septic shock following an ulcer, according to the company.
“When you think about where we started with Crispr, just 12 years ago with some of the fundamental insights, I think there was a lot of talk about what might be possible, and we’ve had reports along the way in terms of milestones, but this is the first Phase 3 data in any indication with in vivo Crispr where you’re actually changing a gene that causes disease,” said Intellia CEO John Leonard.
The only FDA-approved Crispr-based medicine comes from Vertex Pharmaceuticals. Called Casgevy, the gene editing is done outside the body, or ex vivo. The process requires collecting a person’s blood cells, making the edits outside the body, then reinfusing them back into a patient. Intellia’s treatment, meanwhile, makes the edits inside the body, or in vivo.
Intellia said it has started a rolling application with the FDA and plans to complete the filing in the second half of this year. The company expects to launch the treatment in the U.S. in the first half of next year, if it’s approved.
If approved, Intellia’s treatment, lonvoguran ziclumeran, will compete with about a dozen other chronic drugs for HAE. Despite the allure of a one-time treatment, genetic medicines haven’t always been a commercial successes. BioMarin withdrew its gene therapy for Hemophilia A because of weak sales, for example.
Leonard said there are important differences between the two, like the fact that BioMarin’s therapy faced questions about how long the effects would last. In contrast, he said Intellia hasn’t seen a single case in almost six years where the effects diminished over time.
Despite the results, he’s reluctant to call Intellia’s treatment a functional cure.
“I think this is a tipping point for the disease and tipping point for Crispr-based in vivo therapy where you can make a change [and] it’s permanent,” Leonard said. “And, as far as we can tell, we don’t have a single patient in this program or other program where there’s been any waning of the effect of what we did to the gene or the effect of what we’ve seen with the clinical aspects of the disease itself. So it’s pretty exciting.”
Clarification: This story has been updated to clarify that a patient in a separate trial of a different treatment from Intellia developed acute liver injury and ultimately died from septic shock following an ulcer.
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