A method for operating a gas turbine engine, including a first compressor, a second compressor, and a turbine, coupled together in serial flow arrangement. The method includes channeling compressed airflow discharged from the first compressor through an intercooler having a cooling medium flowing therethrough, operating the intercooler such that condensate is formed in the intercooler from the compressed airflow, and channeling the condensate to an inlet of the first or second compressor to facilitate reducing an operating temperature of the gas turbine engine.