IndiGo Posts Record Profit, Sees Increase in Passenger Numbers & Capacity

IndiGo, which became the first airline to transport more than 100 million passengers in a single Financial Year has posted a record profit. On May 23, 2024, the airline announced its fourth quarter and full financial year earnings. It posted its highest-ever yearly profit in FY23-24.

IndiGo Posts Record Profit in FY23-24

In the Financial Year 2023-24, which started in April 2023 and ended in March 2024, IndiGo posted a net profit of Rs 8,172 crore. This is a huge jump when compared to a loss of Rs 300 crore in the previous financial year. In terms of revenue, the airline witnessed a jump of 26.6% reaching 68,904 crore.

The airline’s capacity has increased by 21.8% to 139,30 crore. The number of passengers carried by the airline increased by 24.7% to 10.6 crore. It became the first airline to transport 100 million passengers in a single financial year. The airline’s overall occupancy increased to 85.9%, enhancing by 3.8%. Yield has decreased by 1%.

Chief Executive Officer Pieter Elbers said that this financial year has been a year with many remarkable achievements. After the pandemic, this was the first fiscal, where all four quarters yielded profits. The airline has believed in the execution of its strategies, which has set it in this position. He extended thanks to all the passengers and stakeholders, who took part in this journey.

Fourth Quarter Results

Similar to the previous three quarters, the airline has yielded positive results for Q4 as well. The net profit increased to Rs 1,894 crore, compared to Rs 919 crore in Q4 FY23. For the quarter ending March 2024, the airline witnessed a 1/4th increase in revenue to 17,825 crores.

IndiGo’s capacity increased by 14.4% to 34.8 billion, and passenger numbers rose by 14% to 2.67 crore. Operating 2,021 flights in a single day marks the highest daily flight record for the airline. The airline saw a 7% increase in yield to Rs 5.19, with PLF improving to 86.3%. Compared to last quarter, the airline doubled its financial performance.

According to media personnel, the airline is expected to provide bonuses to its staff members. As of March 31, 2024, the airline has a total cash balance of Rs 34,737 crore, which includes 20,823 crore as free cash and remaining as restricted cash. Compared to the previous quarter, the fleet increased by 9 aircraft. As of March 31, it had a fleet of 367 aircraft including 31 A320ceos, 192 A320neos, 94 A321neos, 45 ATRs, 3 A321P2Fs, and 2 B777 on damp lease from Turkish Airlines.

Future & Business Class Seats

In the first quarter of FY25, the airline is expected to increase its ASKs by 10-12 percent YoY. IndiGo’s Chief Executive Officer, Pieter Elbers has announced the launch of Business class seats. These tailor-made business-class seats will be launched before the end of this year.

By August, IndiGo will reveal more details regarding these seats. To know all the details currently available in the public domain, you can read this article from Times of Aviation: IndiGo to launch Business Class seats.

In the next year, it will receive the delivery of its first Airbus A321XLR, with which it is expected to enter the long-haul market. It has also ordered 30 Airbus A350-900 aircraft, with the first one expected to be delivered by 2027.

Conclusion: IndiGo Record Profit

IndiGo has posted record profits for the financial year 2023-24. This was one of the best years for IndiGo in terms of performance. It transported more than 100 million passengers in a single year, becoming the only airline to do so. It is expected to launch a business-class cabin by the end of this year.

What do you think about this record profit from IndiGo? Discuss in the comment section.