IndiGo, India’s largest airline with more than 50 percent market share, is also the seventh largest in the world in terms of daily departures. Currently, the airline operates more than 1,600 flights a day and has a domestic market share of more than 57 percent. With increasing competition and the revival of Air India under Tatas ownership, IndiGo is also looking to expand its international operations. The airline’s fleet at the end of September consisted of 279 aircraft, including 26 A320 CEOs, 149 A320 NEOs, 68 A321 NEOs, 35 ATRs and 1 A321 freighter.
IndiGo posted a loss of Rs 381.8 crore in the last quarter under review, excluding a foreign exchange loss of Rs 1,201.5 crore. In the September quarter last year, the airline posted a loss of Rs 1,435.66 crore.
IndiGo CEO Pieter Elbers said the September quarter was the second quarter in a row that it operated at a higher capacity than before Covid. “Despite a seasonally weak quarter, we saw relatively good returns with strong demand across the network. However, fuel prices and exchange rates adversely affected our financial performance.
“We are on a steady path to recovery, benefiting from huge opportunities in both domestic and international markets. As the industry faces global supply chain disruptions, we are working on various countermeasures to meet this strong demand,” he said.
In the September quarter, the airline said capacity grew 75 percent and passenger numbers rose 75.9 percent to 1.97 billion. Revenue improved 21 percent to Rs 5.07 crore, while load factor rose to 79.2 percent, according to the release.
“The challenges are forcing us to look at different ways and means to make sure we have the capacity to operate… One of the things we’re doing is extending some leases, delaying some repeat deliveries and possibly wet lease operations… We’re just finalizing that, he said.
He listed On-Time Performance (OTP), affordable tariffs, courteous and hassle-free services and unrivaled network coverage as priorities. It will also focus on developing internal structures, people and processes in line with the size of operations, customer base and future ambitions.
“We will build on our strong foundations with more international aspirations,” he said. IndiGo CFO Gaurav M Negi said that while fuel and forex continue to be headwinds, “we are reasonably confident that we will return to operating profitability in the third quarter”.
The company’s director of strategy and revenue Sanjay Kumar said there was a strong recovery across all segments, including traction in international tourist arrivals and strong corporate demand.