IndiGo shares fall as airline halts Manchester flights amid soaring operational costs

Shares of InterGlobe Aviation, the operator of IndiGo, fell more than 1% to their day’s low of Rs 4,425 on the BSE on Wednesday after it suspended flights to and from Manchester from August 31, as prolonged airspace restrictions and rising operational expenses continue to weigh on long-haul services.

The airline said the temporary suspension will lead to the return of one of the six Boeing 787-9 Dreamliner aircraft leased from Norse Atlantic Airways, which were brought in to support its long-haul international expansion plans.

In a statement issued on Tuesday, IndiGo said ongoing international airspace constraints have significantly increased flight durations, while a difficult cost environment has made operations on the route increasingly challenging. As a result, services between India and Manchester will be paused from August 31, 2026.

The carrier had inducted six Boeing 787-9 Dreamliners on damp lease from Norse Atlantic Airways in early 2025 as part of its strategy to accelerate entry into European markets before the arrival of its own Airbus A350 aircraft. The Manchester service was among the first long-haul routes launched under this initiative.

According to the airline, a combination of geopolitical tensions in the Middle East, elevated aviation turbine fuel (ATF) prices, severe airspace restrictions and currency volatility pushed operating costs well above original expectations.

Abhijit Dasgupta, Senior Vice President for Network Planning and Revenue Management at IndiGo, said the route had received a strong response from passengers despite the operational difficulties.

“We inducted these wide-body aircraft on a short-term basis to fast-track our connectivity to high-potential long-haul destinations such as Manchester and witnessed very encouraging demand response,” Dasgupta said.”Unfortunately, longer flying times due to airspace constraints coupled with dramatically escalating costs compelled us to take the decision to temporarily discontinue our India-Manchester services,” he added.

The airline stressed that the suspension is only temporary and reaffirmed its commitment to growing its long-haul international network. Dasgupta said the positive customer response had strengthened IndiGo’s confidence in the long-term viability of the Manchester route and its wider international expansion plans.

IndiGo also said affected passengers will be notified in advance and assisted with alternative travel options or refunds, wherever applicable. The airline clarified that all of its other long-haul international services will continue to operate as scheduled.

IndiGo Q4 snapshot

India’s leading airline by market share reported a net loss of Rs 2,536 crore for the fourth quarter of FY26, compared with a net profit of Rs 3,067 crore in the corresponding period last year. Revenue from operations, however, edged up 1% year-on-year to Rs 22,438 crore.

The airline said its operational performance during the quarter was affected by disruptions linked to the ongoing conflict in the Middle East. Capacity, measured in available seat kilometres (ASKs), increased 3.4% year-on-year to 43.6 billion.

IndiGo shares have fallen 20% in the last six months and about 17% in the last 1 year.

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