Archive · 6 Oct 2026
IndiGo’s Cost Advantage Drives Strong Margins Against Global Rivals
Airlines spend money on things like fuel, workers, and running their planes.
IndiGo spent less on worker costs as a share of revenue than the full-service airlines in this comparison.
Its costs per seat mile, excluding fuel, were also lower than those of Southwest, Delta, United, and American, though higher than Ryanair’s.
IndiGo’s EBITDA margin was 25% in FY26, close to Ryanair’s 24%.
The full-service airlines and Southwest had lower margins in the figures shown.
Fuel was still a large expense for IndiGo, at 30% of revenue.
IndiGo also flew a large number of available seat miles.
The comparison shows how different airline costs can affect profitability.
IndiGo reported a 25% EBITDA margin in FY26, matching its FY24 margin and close to its 24% margin in FY25.
Ryanair’s FY26 EBITDA margin was 24%; Delta and United each recorded 13%, while Southwest had 7% and American 6%.
IndiGo’s FY26 CASM ex-fuel was 6.4 US cents, above Ryanair’s 5.2 cents but below the other airlines compared.
Salaries and related costs were 10% of IndiGo’s revenue, compared with 30–32% at the full-service airlines.
IndiGo recorded 106.9 billion available seat miles and 2.3 US cents of EBITDA per mile, excluding forex, in FY26.
- Who
- IndiGo and the compared airlines: Ryanair, Southwest Airlines, Delta Air Lines, United Airlines, and American Airlines.
- What
- A comparison of airline profitability, operating costs, labour costs, fuel costs, and scale.
- When
- Primarily FY26; some comparison figures are also specified for FY25 or FY25/26.
- Where
- The article compares airlines operating in India, Europe, and the United States; no specific location for the comparison is given.
- Why
- To show how cost structures, operating efficiency, and scale relate to airline margins.
- IndiGo FY26 EBITDA margin
- 25%
- IndiGo CASM ex-fuel
- 6.4 US cents in FY26
- IndiGo salaries and related costs
- 10% of revenue in FY26
- IndiGo fuel costs
- 30% of revenue in FY26
- IndiGo available seat miles
- 106.9 billion in FY26
- IndiGo EBITDA per mile
- 2.3 US cents, excluding forex, in FY26
- Ryanair CASM ex-fuel
- 5.2 US cents in FY26