IndiGo Announces Bonus to Staff Members After Record Profit

To mark the record profits posted by the airline, the management at IndiGo has decided to provide bonuses to staff members. The airline recorded a net profit of Rs 8,172 crore in FY 23-24. After the pandemic, this was the first financial year, in which all four quarters proved profitable for IndiGo.

IndiGo: Bonus For Employees

The largest airline in India has announced additional bonuses for its staff members. They will receive a bonus of 5 percent of their salaries. The Chief Human Resource Officer of IndiGo, Sukhjit Parischa said this bonus is more than the previous 3%.

On May 2, the airline announced that it would pay a bonus to its employees equivalent to 1.5 times the basic monthly salary. In May last year, it paid a bonus of 3 percent for reporting a profit for the second consecutive quarter.

In the fourth quarter, IndiGo posted a profit of Rs 1,895 crore. In the financial year FY23-24, it posted a net profit of record Rs 8,172 crore. It has become the first airline to transport more than 100 million passengers in a single financial year.

Air India Follows Suit

Air India, the second largest airline in India has also announced the introduction of bonuses to its pilots and cabin crew members. Unlike the IndiGo bonus which is disbursed to all employees, the annual bonus of Air India will be disbursed based on employee individual performance.

Rise.AI is a platform developed by Air India, which tracks the individual performance of airline employees. This system rates employee performance. If the rating is above 3, the employee will be eligible for the bonus.

Cabin crew members will receive an annual bonus of Rs 25,000. On the other hand, pilots have a variable bonus pay depending on their rank. Junior First Officer, First Officer, Captain, Commander, and Senior Commander will receive a bonus of Rs 42K, Rs 60K, Rs 60K, Rs 132K, and Rs 180K per annum respectively.

Vistara and Air India are likely to be merged before the end of this year. Since Vistara is an independent entity, its staff members will currently receive 100% of their bonus. However, once the airline staff comes under the umbrella of Air India, they will receive a bonus based on performance.

Parallel Story: Record Profits & Employee Bonus

Not just IndiGo, but other global airlines have also provided bonuses to their staff members. To be honest, their bonuses look massive in front of the ones provided by Indian counterparts.

Emirates recently posted a net profit of Dh18.7 billion in the last financial year. To mark this occasion, it awarded its employees with a bonus equivalent to their five months’ salary. With this, the airline expressed gratitude to its staff members and commended their dedication.

Singapore International Airlines, the soon-to-be minority stakeholder of Air India has also posted a record profit of $1.98 billion in the last fiscal. It opted to provide bonuses to its staff members, equivalent to eight months of their salary. The way foreign airlines treat their staff is one of the most important reasons, why Indian pilots want to move to a foreign airline.

Conclusion: IndiGo, Air India & Crew Bonus

IndiGo has announced a bonus of 5% to all its pilots and cabin crew members. Air India has also announced payment of additional bonuses to its pilots and cabin crew members based on their performances. Worldwide, airlines are posting record profits, as the industry is booming after the offset caused by the pandemic.

What do you think about this additional bonus from IndiGo & Air India? Discuss in the comment section.