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This paper deals with the exergo-environmental analysis of gas turbine with possible application as aviation auxiliary-power-unit (APU). The present work reports a comparison of thermodynamic performance, NOx and CO emission for basic gas turbine cycle (BGT) and intercooled-recuperated gas turbine (IcRcGT) cycle based engines for possible use by the aviation industry as auxiliary power unit (APU). In addition to this environmental sustainability index of these two cycles is also presented. Various cycle operating parameters such as compressor-pressure-ratio (rp,c), combustor-primary-zone-temperature, equivalence-ratio, and residence time have been chosen for analysis of the cycles. Mathematical modeling of the cycles has been done and the same have been coded in MATLAB. Results show that IcRcGT cycle exhibits higher gas turbine power output and gas turbine efficiency in comparison to BGT cycle for the same rp,c and turbine inlet temperature (TIT).