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Indian low-cost carrier IndiGo returned to profitability in the third quarter of fiscal 2025, and CEO Pieter Elbers said the airline is looking to speed up the deployment of long-range aircraft.
“Subject to regulatory approvals, we are exploring interim solutions for an earlier introduction of long-range aircraft to our fleet through wet leases,” Elbers said on an earnings call. “Route and network opportunities are being explored at present.”
India has the fastest-growing major economy, Indian businesses are expanding internationally, and Indian citizens are exploring more destinations than ever before. That leads to what Elbers described as a “vast reservoir of untapped potential.”
The airline is actively pursuing regulatory approvals and interim measures to integrate long-range aircraft into its fleet, ensuring it can cater to the burgeoning demand for long-haul travel.
“Amidst all the supply chain disrupted environment, we have developed a capability of leveraging secondary market capacity to cater to the robust demand. And we’re hopeful that soon, we will be able to cater to the demand in the long-haul markets.”
IndiGo has also strengthened its fleet and network: The airline added 27 aircraft, bringing its total fleet to 437, which includes next-generation A320 NEOs and long-range B777s.
The airline’s operations now span 89 domestic and 34 international destinations, with 4 new destinations announced: Mauritius, Macau, Penang and Medina. “We are aiming to end this year with at least 40 international destinations,” Elbers said.
Business Class Boost
To improve passenger experience, IndiGo introduced its business class service, “IndiGo Stretch,” on the popular Delhi-Mumbai route in mid-November.
“We started with 6 flights and by the end of the year all our 40 sectors between Delhi and Mumbai operated with this new product,” Elbers said.
The airline recently rolled out the service on the Delhi-Bengaluru route. Elbers said the airline plans to extend it to the Delhi-Chennai route “very soon.”
This year IndiGo aims to offer its business class service on 10 additional metro-to-metro routes across the country, deploying a fleet of around 45 aircraft, Elbers said.
Globally in some other markets, there’s a surge in premium demand. Elbers said with stretch IndiGo is exactly matching the evolving needs of the Indian consumers and initial response to this premium product has been promising.
“The very core of our operation will still be what we have today, but this (IndiGo Stretch) is a very tailormade solution and we keep all options open going forward if we should expand it to other regions or other parts of the network.”
Highlights of the Third Quarter
For the quarter ending December 31, 2024, compared to the same period last year
Net Profit: The airline reported a profit of INR 24.5 billion, compared to a net profit of INR 30 billion ($347 million).
Revenue Growth: Total revenue rose by 14.6% year-on-year to INR 230 billion ($2.6 billion), with passenger ticket revenues and ancillary services driving this growth.
Passenger Milestones: A record-breaking 31.1 million passengers were served during the quarter, highlighting a 13% increase from the same period last year.
Capacity Growth: Capacity expanded by 12% to 40 billion, accommodating the surging demand for domestic and international travel.
