IndiGo, India’s largest airline with over 50 percent market share, is also the world’s seventh largest in terms of daily departures. Currently, the airline operates more than 1,600 daily flights and has a domestic market share of more than 57 per cent. With increasing competition and Air India being revived under the ownership of Tatas, IndiGo is also looking at expanding its international operations. The airline’s fleet stood at 279 aircraft, including 26 A320 CEOs, 149 A320 NEOs, 68 A321 NEOs, 35 ATRs and 1 A321 freighter at the end of September.
IndiGo reported a loss of Rs 381.8 crore, excluding the foreign exchange loss of Rs 1,201.5 crore, in the latest quarter under review. In the September quarter of last year, the airline had a loss of Rs 1,435.66 crore.
IndiGo CEO Pieter Elbers said that the September quarter was the second consecutive quarter wherein it operated at higher than pre-Covid capacity. “In spite of a seasonally weak quarter, we witnessed relatively good yields with strong demand across the network. However, fuel prices and exchange rates have adversely impacted our financial performance.
“We are on a steady path to recovery, benefiting from enormous opportunity both in domestic and international markets. With an industry challenged by global supply chain disruptions, we are working on various countermeasures to accommodate this strong demand,” he said.
In the September quarter, the airline said its capacity increased by 75 per cent and the passenger numbers rose by 75.9 per cent to 1.97 crore. Yield improved by 21 per cent to Rs 5.07 while the load factor rose to 79.2 per cent, as per the release.
“The challenges are forcing us to look at different ways and means in order to make sure that we have the capacity to operate… One of the things we are doing is extending some of the leases, postponing some of the re-deliveries and a possible wet lease operation… We are in the process of finalising that,” he said.
He listed out On-Time Performance (OTP), affordable fares, courteous and hassle-free service and unparalleled network coverage as among the 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 foundation with more international aspirations,” he said. IndiGo CFO Gaurav M Negi said that while fuel and forex continue to pose headwinds, “we are reasonably confident that we will return to operational profitability in the third quarter”.
The airline’s Chief Strategy & Revenue Officer Sanjay Kumar said there is a strong recovery from all segments, including traction in international tourist arrivals and strong corporate demand.
The CEO noted that operating more than 1,600 daily flights require “enormous operational discipline and innovation”. While noting that IndiGo’s fleet utilisation is very efficient, he said the Indian market is recovering faster recently, and there is also robust demand.
“IndiGo today, with daily departures of more than 1,600 flights, is now the world’s 7th largest airline measured in terms of departures. That is an important element to take into account on how we organise our resources and structure the organisation…,” Elbers noted.
Negi said one freighter is expected to be added in December and two more in early next financial year.
With PTI inputs
