India’s largest airline in terms of market share and fleet size IndiGo scored a lucky 7! The low cost carrier reported profit for the seventh quarter in a row. While IndiGo’s PAT decreased by almost 11% in Q1 FY25 at ₹2,728 crore, the airline reported a strong revenue. IndiGo recorded a 17.3% jump in revenue at ₹19,570.7 crore.
In the post results concall, IndiGo’s CEO Pieter Elbers said that the airline is likely to record growth in ‘early’ single digit in FY25 on the back of increased costs. However, IndiGo’s long term growth plans remain intact. Pieter Elbers said, “We have reported 7 consecutive quarters of profitability. As India gears up to become the 3rd largest economy, we’re also changing ourselves. Going forward we’re confident about the revenue environment and 14% margin in Q1 is solid. In the current financial year, prices will reflect some of the costs like increased cost of fuel, navigation and airport charges.”
IndiGo’s CFO Gaurav Negi updated that IndiGo’s aircraft on ground (AOG) due to Pratt & Whitney (P&W) engine issues are range bound. He said, “The current AOG aircraft remain range bound, in mid 70’s. We are working with (P&W) on getting spare engines & compensation. The grounding will start reducing early next year.” Negi also highlighted that the yields improved by 1.3% YoY, RASK was 5.4% higher QoQ, fuel CASK increased by 10%
IndiGo CEO feels that there is underlying demand in India and he is very confident about the long term growth of India’s market. The airline is all set to introduce a business product as well. Pieter Elbers said, “At the end of this year we will introduce our business product on the busiest routes in India Our more plans will be revealed in August when IndiGo will complete 18 years of operations. We’re confident to grow as we enter the next phase of our growth.”
