India's largest airline, IndiGo, has revealed that its net profit soared to Rs 1,894.8 crore for the quarter ending March 2024. The substantial gain, more than doubling its previous figures, was attributed to increased traffic, expanded capacity, and favorable market conditions. Notably, this marks the sixth consecutive profitable quarter for the airline.
IndiGo also witnessed record highs in its fiscal year, which ended in March 2024, with the airline posting a record annual net profit of Rs 8,172.5 crore and total income of Rs 18,505.1 crore. In the wake of the bustling economy, the carrier said it would introduce business class on select routes this year as it celebrates its 18th anniversary.
IndiGo will announce a custom business class next month to keep up with changing consumer preferences. The airline plans to announce details next month. This comes after IndiGo recently announced the acquisition of 30 wide-body aircraft, a sign that the carrier is aggressive about growing and innovating.
Looking forward, IndiGo said it is expecting a 10-12% increase in capacity measured in Available Seat Kilometres for the current fiscal's first quarter. The airline seemed to be hopeful about sustaining its financial momentum despite a 6.5% increase in fuel costs and a 22.3% increase in overall expenses in the latest quarter.
IndiGo's parent, InterGlobe Aviation, reported a massive jump in profit after tax to Rs 1,894.8 crore for the fourth quarter of 2023-24. Total income also witnessed a huge uptick, rising nearly 27% to Rs 18,505.1 crore as compared to the same quarter last year.
IndiGo CEO Pieter Elbers cited strong financial performance from the airline throughout the fiscal year and underscored the company's strategic execution, together with market resilience. While passenger ticket revenues rose 25.5% to Rs 15,600.9 crore, ancillary revenues rose 18.9% to Rs 1,719.4 crore on an annual basis for the March quarter.
Elbers emphasized the long-term growth prospects at IndiGo, with nearly 1,000 aircraft to be delivered by 2035 from a pending order book. Having faced some challenges recently, notably with the grounding of some planes due to problems with Pratt & Whitney engines, the airline vows to grow relentlessly, having taken its market share in the domestic market to 60.6% as of April.
With a cash balance of Rs 34,737.5 crore as of March—Rs 20,823 crore of that free cash—the carrier is in an excellent position to face any future opportunity or challenge that this dynamic sector can throw at it.
Read also | Medanta Hospitals Witnesses Impressive 25% Surge in Q4 Net Profit to Rs 127 Crore
Read also | SAIL's Q4 Profit Slips 2%, Reaches Rs 1,126 Cr; FY24 Net Profit Climbs to Rs 3,066 Cr
