DALLAS — IndiGo Airlines (6E) has reported one of the largest profits in Indian aviation history of INR 8,172 crores (US$ 981.2 Million) for FY24. This record profit comes after a loss of approximately INR 300 crores (US$ 36 Million) in the previous fiscal year.

With a consecutive profit for the past six quarters, the Indian low-cost carrier (LCC) also reported a net profit of INR 1,894.8 crores (US$ 227.4 Million) for the past quarter. The LCC’s CEO, Pieter Elbers, stated that the Indian aviation market is still underserved, and a substantial increase in passenger traffic also contributed to the total profit despite rising fuel prices.

A considerable rise in EBIDTAR to INR 4412.3 crores (US$ 529.8 Million) marks a 48.7 percent increase comparing the previous year. This amounts to an EBIDTAR margin of 24.8 percent, up from 20.9 percent in the previous year.  

The Indian LCC further strengthens its financial strength with a total cash balance of INR 34,737 crores (US$ 4.17 Billion), which includes INR 20,823 crores (US$ 2.5 Billion) of free cash.

Introducing Business Class

With a fleet of over 350 aircraft, 6E plans to upgrade its strategy with an introduction of business class cabin, particularly aimed to cater premium travel. Pieter Elbers said that the new tailor-made business product will be operational before the end of 2024. 

Further details of the routes, launch dates, and the product will be announced closer to the airline's 18th anniversary in August 2024. However, it is planned to serve on the country's busiest and business routes as a first step.

The expansion of 6E is at a rapid pace with a record-breaking order of 500 Airbus A32neo family aircraft at Paris Air Show 2023 and a recent order of 30 Airbus A350 aircraft. The airline plans to slowly upgrade its network with the induction of new aircraft. 

Currently, the Indian LCC operates a Boeing 777-300(ER) as the only wide-body aircraft in its fleet. The Boeing 777, which is on a damp lease from Turkish Airlines (TK) operates regular flights from Mumbai (BOM) and Delhi (DEL) to Istanbul (IST),

Keeping up with the Competition

Last year, Indian aviation saw multi-billion orders of aircraft from both 6E and Air India (AI), with 470 aircraft for AI from both Airbus and Boeing. Moreover, Akasa Air (QP) has inducted over 20 aircraft since its beginning, which adds to the strong presence of the airline, especially in tier 1 and 2 cities.

Akasa Air plans to operate international flights from March 2024, however, 6E believes the aviation market is still underserved. There is a strong market demand in the country, even higher in the international routes, said Pieter Elbers.

The addition of a business class cabin helps 6E to cater to corporate and premium travelers, which is missing when comparing the products of its competitors. 6E’s CEO also confirmed that this reinforces their position as LCC, having such an opportunity to bring in new products to their fleet.