Summary
- IndiGo reported a quarterly profit of INR 30 billion ($361.4m) and achieved its fifth consecutive quarterly profit, showing strong recovery from the financial impact of COVID-19.
- Within the third quarter, IndiGo increased capability by 26.8%, carried 27.5 million passengers, and improved its passenger load factor to 85.8%, indicating robust demand for air travel.
- Despite the grounding of around 70 aircraft, IndiGo successfully managed the situation and plans to keep up capability and drive future growth.
On Friday, India’s fastest-growing airline, IndiGo, released its results for the quarter ending December 31, 2023 – the third quarter of its 2024 fiscal yr. In 3Q2024, the airline made an after-tax profit of INR 30 billion ($361.4m) and recorded its fifth consecutive quarterly profit, well and truly shaking off the financial blues of the COVID-19 era.
Passenger record within the third quarter
For the quarter that ended December 31, 2023, in comparison with the identical period in 2022 (YoY), IndiGo increased capability by 26.8%. The variety of passengers carried rose by 23.4% and the airline improved its passenger load factor by 0.7 points to 85.8%. IndiGo carried 27.5 million passengers in comparison with 22.3 million in 3Q2023 and lifted operational revenue by 30% to $2.34 billion.
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On February 2, IndiGo CEO Pieter Elbers discussed the quarterly results on a conference call and said the airline had made a profit after tax of 30 billion rupees at a margin of 15.4%. Elbers stated that the positive results during the last five consecutive quarters are an end result of strong demand for air travel and the diligent execution of the airline’s strategy.
“With these results, I’m very glad to share that we’ve got change into net value positive again and we proceed to get well from the losses we incurred through the COVID period. We added around 27% capability in Available Seat Kilometres (ASKs) and with an underlying strong demand this growth was well absorbed as our load aspects improved to 86% as in comparison with the identical period last yr.”
Within the third quarter, IndiGo reached the milestone of two,000 day by day flights and carried 27.5 million passengers, the highest-ever number carried quarterly in its history. The strong finish to calendar 2023 also got IndiGo admitted to the exclusive club of airlines that carried 100 million passengers in a yr, which it achieved in only 17.5 years, which Elbers said was
Taking the engine AOGs in its stride
What makes these results much more impressive is that around 70 of its 358 aircraft are grounded attributable to inspection and provide chain issues referring to the Pratt & Whitney PW1100G engines that power about 140 of its Airbus A320neo Family jets.
Photo: WeChitra | Shutterstock
On the groundings, Elbers said early actions taken by IndiGo helped it navigate the AOG situation and grow capability in each quarter.
“Waiting for the calendar yr 2024, we still have headwinds in the shape of those groundings, nevertheless we proceed to work diligently towards maintaining our capability plans and driving our future growth.”
IndiGo reported it had 358 aircraft at the top of the December 31 quarter. Its fleet composition is as follows:
- 31 Airbus A320-200s
- 184 A320neos
- 94 A321neos
- Three A321 freighters
- 44 ATR turboprops
- And two Boeing 777s on a moist lease arrangement