IndiGo not exploring fuel hedging for now; may consider it with long-haul expansion: CEO
Willie Walsh
InterGlobe Aviation recorded a net loss of INR 1,879.1 crore in the July–September quarter of FY2026–27, narrowing from the INR 2,582.1 crore loss reported during the corresponding period last year.
IndiGo CEO Willie Walsh stated on November 1 that the airline is not considering fuel hedging at present but may explore the option as it expands its long-haul operations. The remarks come at a time when the surging fuel costs are pushing up operational expenses of carriers, and IndiGo itself recorded a loss in the September quarter due to high fuel prices and rupee depreciation.
Walsh said hedging is a very difficult decision to make. "Hedging is about managing risk; it's not about taking a bet on what the fuel price will be; it is about giving you stability and managing risk. Today, it is quite easy that none of the airlines of the Indian domestic market is hedged," Walsh said.
If IndiGo was to hedge fuel prices given that the competitors in the domestic market aren't hedged, then an additional risk is being introduced, he said and added that such a scenario goes against the whole principle of hedging.
Fuel costs account for nearly 40% of an airline's operational expenses. "I think we do need to look at what we would do in the context of long-haul expansions given that most of the airlines that we are likely to compete with tend to be hedged at different levels," Walsh said.
InterGlobe Aviation recorded a net loss of INR 1,879.1 crore in the July–September quarter of FY2026–27, narrowing from the INR 2,582.1 crore loss reported during the corresponding period last year. The company's total income increased to INR 24,311.9 crore, compared with INR 19,599.5 crore in the year-ago quarter. However, the growth in revenue was accompanied by a substantial rise in expenditure, which climbed to INR 26,188.4 crore.
Aircraft fuel costs reportedly emerged as a major pressure point, surging 67.2% to INR 9,966.8 crore during the quarter. The airline attributed the weaker financial performance to exceptionally high fuel prices and adverse currency movements.
Walsh described the September quarter as a seasonally subdued period, further complicated by unusually high fuel expenses and persistent geopolitical uncertainty. The airline responded by moderating capacity and managing yields to protect revenue performance, although these measures were insufficient to fully absorb the increase in operating costs.
Looking ahead, the carrier expects capacity expansion to remain in the early single-digit range in the December quarter, compared with the corresponding period last year.
