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IndiGo announced a record profit of ₹919.2 crore in the March quarter driven by robust demand for air travel. The company plans to expand its operations further in Central and South Asia and the Middle East. To support its growth plans, IndiGo aims to hire 5,000 employees and double its size by 2030.
During the quarter, daily air passenger traffic in the civil aviation market reached 420,000, surpassing pre-pandemic levels, indicating a recovery in the aviation industry. IndiGo’s management considers the previous financial year as a period of recovery and growth for the airline.
Robust demand
Pieter Elbers, CEO of IndiGo, attributed the strong financial results to a combination of robust market demand and focused execution of strategy. He said it was the second consecutive quarter in which it achieved strong operational and financial outcomes, culminating in the highest-ever net profit for a fourth quarter.
IndiGo’s total income for the quarter increased 78 per cent year-on-year to ₹14,600 crore. The growth is notable considering the negative impact of the Covid-19 pandemic in the corresponding quarter of the previous year, which led to a net loss of ₹1681.8 crore.
The airline reported a yield of ₹4.85 per kilometer, compared to ₹4.40 per kilometer in the same quarter of the previous year. This indicates improved revenue earned per paying passenger flown per kilometer.
Path ahead
Looking ahead, IndiGo expects a 5-7 per cent increase in total capacity, measured in available seat kilometers or passenger carrying capacity, for the June quarter.
For 2022-23, InterGlobe Aviation reported lower net loss of ₹305.8 crore against a net loss of ₹6161.8 crore in the previous fiscal.
As of March 31, 2023, IndiGo’s fleet had 304 aircraft. During the quarter, the airline added two aircraft to its fleet.
. In the current fiscal, IndiGo aims for mid-high teen growth and has set a target to serve 100 million passengers by 2024.
On the fleet size, the CEO said IndiGo doesn’t expect more planes to be grounded as the new aircraft are fitted with CFM engines. Currently, more than 35 aircraft from its fleet are grounded for various reasons.
In terms of fleet addition, IndiGo plans to add 40-50 aircraft in 2023-24, against 19-20 in the previous fiscal. Lower net aircraft addition in the previous fiscal was due to supply chain-related challenges.
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