IndiGo, India's largest airline, has posted an unexpected net loss for the second consecutive quarter, driven by elevated fuel expenses resulting from geopolitical tensions. This development has pushed its stock price to its lowest level in over a month.

Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, fell as much as 2.74% on Friday, hitting their lowest point since June 18. The airline reported a net loss of 2.38 billion rupees for the quarter ending June 30, a stark contrast to the 14.3 billion rupee profit analysts had predicted in a media survey.

While revenue for the quarter surged 20% year-over-year to 245.84 billion rupees—exceeding market expectations—total expenses soared 34% to 258.5 billion rupees. Fuel costs, which account for roughly 40% of the airline's total expenses, skyrocketed 86% compared to the same period last year. Additionally, the company recorded a foreign exchange loss of 825 million rupees.

The financial results highlight the mounting pressure on the aviation sector from rising operational costs, with fuel and currency fluctuations playing a significant role in the unexpected downturn.