IndiGo shares dropped 8% on Monday, heading for their steepest decline since March 2022, after the airline warned of a likely fall in per-passenger revenue following its first quarterly loss in nearly two years. Shares hit an intraday low of 3,780 rupees, down as much as 13.4%.

Higher fuel and expenses from grounded aircraft led to IndiGo’s recent quarterly loss. Chief Financial Officer Gaurav Negi said on Friday’s earnings call that based on October trends, the airline expects early- to mid-single-digit declines in passenger unit revenue for the third quarter compared to the same period last year.

Brokerages like Investec and Elara Capital forecast continued earnings pressure as fares drop but costs remain high, rating the stock as a “sell.” IndiGo shares have fallen 25% since reaching a record high in mid-September, due to declining fares and slower growth. Until then, shares had doubled, reflecting seven consecutive profitable quarters as IndiGo tapped into high travel demand and faced limited competition.

IndiGo shares are now on a six-day losing streak, down about 19%, reducing the airline’s year-to-date gain to 35%.