IndiGo CEO William Walsh Takes Aim at Airport Monopolies as Record Fuel Costs Bite
India’s largest airline is pressing for lower airport charges and tax relief after a crippling fuel bill pushed it into a ₹1,879 crore quarterly loss — and the carrier’s new chief executive is warning that the current cost structure could throttle the country’s aviation growth story.
By Aviation Desk | 2 November 2026 | 6 min read
IndiGo chief executive William “Willie” Walsh has never been shy about picking a fight with airport operators. As the former head of the International Air Transport Association, he once branded London’s Heathrow a “greedy monopoly hub” over its charging regime. Now, barely three months into his new role at the helm of India’s largest airline, Walsh is applying the same combative logic to the Indian market — and the timing could hardly be more urgent.
Speaking at his first in-person media briefing since taking charge in August, Walsh called for lower airport charges and lower taxes, arguing that high operating costs are eroding the financial health of airlines and, by extension, the country’s ability to expand air connectivity. “Lower taxes, lower airport charges — that’s the way forward,” he said, according to multiple reports from the briefing in New Delhi on Monday[reference:0].
The appeal comes against the backdrop of an unprecedented fuel-price environment. In the September quarter, IndiGo reported a consolidated net loss of ₹1,879.1 crore, with fuel expenses surging 67.2 per cent year-on-year to ₹9,966.8 crore[reference:1]. The airline has recovered only about 60 per cent of the increase in fuel costs through fare adjustments and surcharges, Walsh said, warning that the December quarter could bring an even higher fuel bill[reference:2].
“I haven’t changed my view. Airport charges are too high. We would do much better if we had lower taxes. So lower taxes, lower airport charges. That’s the way forward.”
— William Walsh, CEO, IndiGo
Why Airport Monopolies Are in the Crosshairs
Walsh’s argument is straightforward: airports in India — particularly the large metro hubs — operate as effective monopolies, and that market power is being reflected in pricing that airlines and, ultimately, passengers must absorb. “Airports, which effectively operate as monopolies, should be more competitive in their pricing,” he said[reference:3]. He added that he had held discussions with Arun Bansal, chief executive of Adani Airport Holdings, and hoped to maintain a regular dialogue on the industry’s cost concerns[reference:4].
The numbers bear out the concern. IndiGo’s airport fees and charges rose nearly 10 per cent year-on-year and 2 per cent sequentially to ₹1,660 crore in the September quarter, according to the airline’s investor presentation[reference:5]. Airport charges alone increased by around 4 per cent in the second quarter, Walsh noted, even as airlines were already battling record fuel costs[reference:6].
The broader context matters here. The Airports Economic Regulatory Authority of India (AERA) sets aeronautical charges — landing fees, parking fees, and user development fees (UDF) — at major airports through periodic reviews[reference:7]. At Delhi airport, for instance, AERA approved higher landing and parking charges for the five-year period beginning April 2024[reference:8]. Those costs are passed through to airlines, and from there into the price of a ticket.
Industry analysts point out that India’s airport infrastructure density is far lower than that of developed markets, which amplifies the pricing debate. India has 44 airports per million square kilometres, compared with 334 in the United States, and 0.11 airports per million people versus 15 in the US, according to Amit Mittal, director at consultancy AeroIntellect Aviation[reference:9]. “In purchasing-power-parity terms, India’s airport charges are often higher than comparable US charges for passengers, especially at major metro airports,” Mittal said[reference:10].
The Fuel Bill That Refuses to Shrink
If airport charges are the slow-burn problem, jet fuel is the acute crisis. Aviation turbine fuel (ATF) accounts for around 40 per cent of IndiGo’s total operating cost base — a ratio broadly similar to other Indian carriers[reference:11]. The airline’s fuel bill in the September quarter was almost ₹10,000 crore, up 67 per cent from the same period last year[reference:12].
What makes this cycle unusual is not simply the price of crude oil but the unusually wide “crack spread” — the premium that refiners charge for converting crude into jet fuel. Historically, that spread has averaged around 22 per cent. Today it is running at approximately 65 per cent, Walsh said[reference:13][reference:14]. The culprit, according to the IndiGo chief executive, is a disruption in global refining capacity, particularly in Europe, where jet fuel production has been scaled back amid reduced supplies from the Middle East[reference:15].
“We are seeing some recovery in the production of crude oil. We’re not seeing the corresponding and significant increase in jet fuel production,” Walsh said[reference:16]. He expects elevated fuel costs to persist in the near term, although he described the situation as a short-term challenge rather than a long-term structural concern[reference:17].
Key Numbers Behind the Pressure
IndiGo Q2 FY27 net loss ₹1,879 crore
Fuel expenses (YoY change) +67.2%
Airport fees & charges (YoY change) ~10%
Historical jet fuel crack spread ~22%
Current jet fuel crack spread ~65%
Domestic airfares (YoY change, Q2 FY27) >30%
What It Means for Passengers and Airlines
The immediate consequence for travellers is higher fares. Indian airfares rose more than 30 per cent year-on-year in the September quarter, primarily because of higher jet fuel prices, with airport charges and UDF also contributing[reference:18]. Walsh has acknowledged that IndiGo has “no choice” but to raise fares to offset the fuel bill, while insisting the airline is trying to absorb as much of the increase as possible[reference:19][reference:20].
For IndiGo itself, the challenge is compounded by its scale. The airline operates over 2,100 flights daily with a fleet of more than 400 aircraft, making it the dominant player in India’s domestic market with a share of roughly 60 per cent[reference:21][reference:22]. That dominance gives it pricing power, but it also means that any cost shock at the airline level has an outsized impact on the broader aviation ecosystem.
Other carriers face the same cost pressures, although IndiGo’s scale and operational efficiency have historically allowed it to weather shocks better than most. The airline’s decision to review its long-standing policy of not hedging fuel — a policy its former chief executive once dismissed as a “dumb idea” — signals just how seriously management is treating the current environment[reference:23]. Walsh said no hedging decision would be taken until a “comprehensive review” is completed, and he noted that European carriers typically hedge 70–80 per cent of their fuel needs while major Asian airlines hedge around 40 per cent[reference:24].
The Wider Aviation Challenge
Beyond fuel and airport charges, Indian aviation is navigating a thicket of geopolitical and operational headwinds. The closure of Pakistani airspace has forced Indian carriers to modify their networks, and the ongoing Middle East situation has led IndiGo to reduce services by around 30 flights a day, primarily due to the situation in Saudi Arabia[reference:25]. Walsh described the industry as facing “an unprecedented level of geopolitical disruption,” though he expressed confidence in its resilience and operational flexibility[reference:26].
There is also the unresolved policy question of whether airport operators should be allowed to own airlines. IndiGo has raised concerns about a potential conflict of interest in slot allocation if operators with surplus capital were to enter the airline business. “There is a clear conflict of interest in terms of an airport operator owning an airline and slot distribution,” Walsh said during an analyst call in late October[reference:27]. The government has said it is weighing the pros and cons of relaxing ownership restrictions but has not taken a final decision[reference:28].
The Road Ahead
Walsh’s call for lower taxes and airport charges is, in essence, a plea for a more competitive cost structure across the Indian aviation value chain. The airline is also preparing for its next phase of growth: it expects to receive its first Airbus A350 wide-body aircraft in the second quarter of calendar year 2028, a move that will support its long-haul international expansion ambitions[reference:29]. Walsh said IndiGo has “incredible opportunities” despite the challenging operating environment[reference:30].
But those opportunities will be harder to seize if the cost base remains inflated by monopolistic airport pricing and a tax regime that, in Walsh’s view, penalises airlines disproportionately. The coming months will reveal whether his dialogue with airport operators and policymakers produces tangible relief — or whether India’s aviation growth story will continue to be told against a backdrop of rising costs and squeezed margins.
Frequently Asked Questions
Why is IndiGo CEO William Walsh criticising airport monopolies?
Walsh argues that large Indian airports operate as effective monopolies and are therefore able to set charges — landing fees, parking fees, and user development fees — without sufficient competitive pressure. He believes lower airport charges would reduce airline operating costs and ultimately benefit passengers through more affordable fares and expanded connectivity.
How much have airport charges increased for IndiGo?
IndiGo’s airport fees and charges rose nearly 10 per cent year-on-year and 2 per cent sequentially to ₹1,660 crore in the September quarter, according to the airline’s investor presentation. Walsh also noted that airport charges increased by around 4 per cent in the second quarter.
What is causing record jet fuel prices in India?
The spike is driven less by crude oil prices — which are below their 2008 peaks — and more by an unusually wide “crack spread,” the premium refiners charge for converting crude into jet fuel. The historical average crack spread is around 22 per cent, but it has climbed to approximately 65 per cent, largely due to disruptions in global refining capacity, particularly in Europe and the Middle East.
Will airfares continue to rise?
IndiGo has already raised fares and introduced fuel surcharges to recover part of the increase in fuel costs. Walsh has said the airline has “no choice” but to consider further fare increases if fuel prices remain elevated. However, he has also acknowledged that higher fares could weigh on passenger demand, and the airline is balancing pricing decisions against load factors.
Is IndiGo planning to hedge its fuel purchases?
Not immediately. IndiGo is conducting a comprehensive review of its long-standing policy of not hedging fuel. Walsh has said the airline will not make a decision until that review is complete, and he noted that most Indian domestic airlines are currently unhedged. However, the airline’s planned long-haul expansion could prompt a rethink, as many international competitors hedge a substantial portion of their fuel requirements.
