InterGlobe Aviation, the parent company of IndiGo, announced on Friday that it has approved a plan to deploy up to $450 million to support the acquisition of aircraft, engines and other aviation assets, as the airline looks to increase ownership of key parts of its expanding fleet.
The decision was cleared by the company's Board of Directors at a meeting held on Friday, according to a filing released alongside its quarterly results.
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As part of the move, InterGlobe Aviation will partially prepay finance lease obligations worth up to $450 million to InterGlobe Aviation Financial Services IFSC Pvt Ltd, its wholly owned subsidiary.
The subsidiary will use the funds to acquire aviation assets, including aircraft, aircraft engines and spare parts. The move is expected to help the IndiGo group own a larger share of its fleet-related assets instead of relying solely on leased equipment.
The approval comes as IndiGo continues to grow its network and strengthen its fleet.
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During FY26, the airline expanded its capacity by 9.5 per cent to 172.4 billion available seat kilometres (ASKs), while carrying 123.4 million passengers during the year.
By the end of March 2026, IndiGo's fleet had grown to 441 aircraft, making it one of the largest airline fleets in the region.
The carrier's lineup included Airbus A320 and A321 variants, ATR turboprops, dedicated freighter aircraft, as well as Boeing 737 and Boeing 787 planes. The airline also added a net one passenger aircraft during the January-March quarter.
March quarter slips into loss
The fleet expansion announcement came alongside a weak set of quarterly earnings, with IndiGo reporting a net loss of Rs 2,536 crore for the January-March quarter, compared with a profit of Rs 3,067 crore in the same period a year earlier.
Revenue from operations remained largely flat, rising about 1 per cent year-on-year to Rs 22,438 crore.
The airline said capacity increased 3.4 per cent during the quarter despite disruptions linked to tensions in West Asia. However, passenger traffic edged down 1.1 per cent to 31.6 million travellers, while seat occupancy declined to 85.8 per cent from 87.5 per cent a year ago.
Profitability was also hit by weaker yields and higher operating costs. Revenue earned per passenger kilometre fell 2 per cent year-on-year, while non-fuel costs remained elevated.
Although lower fuel prices provided some relief, it was not enough to offset pressure from other expenses and foreign exchange fluctuations.
Despite the quarterly setback, IndiGo said its underlying business remained resilient. For the full financial year FY26, the airline posted a profit of Rs 7,500 crore after excluding the impact of foreign exchange movements and exceptional items.
