India’s largest airline, IndiGo, has reported a decline of 18.3% in its profit after tax, totaling Rs 2,448.8 crore for the quarter ending December 2024. The drop, despite a surge in revenue, was attributed to foreign exchange losses, while higher capacity and passenger traffic drove the carrier’s income up.
IndiGo’s total income rose by 14.6% to Rs 22,992.8 crore, up from Rs 20,062.3 crore in the same period last year. This growth was spurred by increased fleet capacity and a boost in passenger numbers. The airline’s fleet at the end of December stood at 437 aircraft, and it is preparing to incorporate wet-leased planes for long-haul flights. Additionally, IndiGo expects the number of grounded aircraft to reduce from its current level of over 60 to the 40s by the beginning of the next fiscal year.
Although the airline’s profit was impacted by foreign exchange fluctuations, excluding this factor, IndiGo posted a solid profit of Rs 38.5 billion, up from Rs 30.5 billion in the previous year. The foreign exchange loss amounted to around Rs 14 billion, triggered by a 2% depreciation of the rupee compared to the previous quarter. IndiGo’s CFO, Gaurav Negi, emphasized that hedging strategies are being actively employed to manage currency volatility.
Fuel costs, one of the largest components of an airline’s operational expenses, decreased by 6.1% to Rs 6,422.6 crore, though total operational costs rose by 19.9% to Rs 20,465.7 crore during the quarter.
IndiGo’s Chief Executive Officer, Pieter Elbers, expressed satisfaction with the airline’s operational and financial performance for Q3 FY2025. The airline also saw improvements in its aircraft on the ground (AOG) situation, particularly with the challenges related to Pratt & Whitney engine issues, and expects this issue to continue to ease.
Looking ahead, IndiGo plans to expand its international network, with expectations to operate flights to 40 destinations by the end of this fiscal year, up from 38 currently. Furthermore, the airline is considering expanding its hedging positions, which will become more significant as international capacity increases. About 10% of IndiGo’s revenue is derived from its international operations.
For the upcoming fourth quarter, the airline anticipates a 20% increase in available seat kilometers (ASKs) compared to the same period last year, and expects the continued strengthening of its fleet and capacity expansion to support sustained growth in the year ahead.
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