IndiGo may raise airfares further as rising aviation fuel costs and the weakening rupee put pressure on its finances. CEO Willie Walsh said the airline had “no choice” but to increase ticket prices to recover part of the additional expenses, following a net loss of ₹1,879 crore in the September quarter.

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The airline’s fuel bill rose 67.2% year-on-year to nearly ₹9,967 crore. IndiGo recovered only about 60% of the increase through higher fares and other cost-management measures, leaving a substantial portion of the additional expense unabsorbed.

Revenue from operations increased 25.9% year-on-year to ₹23,364 crore. Although the net loss narrowed from ₹2,582 crore in the corresponding quarter last year, higher fuel prices and rupee depreciation continued to weigh on profitability.

Walsh attributed the pressure partly to the widening gap between crude oil prices and the price of aviation fuel, known as the crack spread. He said refining disruptions had pushed this premium significantly above historical levels and warned that fuel costs could remain elevated for some time. The depreciation of the rupee has added to the burden because a significant share of the airline’s expenses is denominated in US dollars.

IndiGo plans to minimise fare increases to limit the impact on passenger demand. Despite carrying 4.7% fewer passengers than a year earlier during the quarter, the airline remains optimistic about travel demand in the December quarter, traditionally a stronger period for festive-season travel.

The carrier also intends to continue its long-term expansion plans, including investment in aircraft and pilots, while reviewing its network and capacity to manage higher operating costs.