IndiGo suffered a net loss of Rs 986.7 crore in second quarter results for the financial year 2024-25
IndiGo CEO Pieter Elbers said the company is likely to reduce the number of grounded planes to less than 50 by March 2025. In an interview with Bloomberg Television on October 29, he added that the low-cost airline is witnessing a surge in domestic air travel demand, which is reflective of decreasing challenges for the company.
While speaking on the efforts to reduce the number of grounded planes, Elbers said, “We’ve turned the corner.”
Earlier on Monday, the company released its second quarter results for the financial year 2024-25 and recorded a net loss of Rs 986.7 crore. The airline has seen a reduction in aircraft on ground from the mid-70s to the high-60s and it expects to reach the 40s in April 2025.
The loss is largely due to elevated fuel costs and disruptions due to grounded aircraft. The result paints a different picture compared to the same quarter last year, which recorded a Rs 189 crore profit and Rs 2,728 crore profit from the June 2024 quarter. Despite the drop in profitability, the company recorded a 14 per cent year-on-year growth in revenue from operations, which grew to Rs 16, 970 crore.
The airline also called out that it is now the first and only Indian airline to cross a fleet size of 400 planes. It also said in the statement that the demand is likely to increase in October. However, the overall competition could moderate yields.
Earlier in May, the company also announced that IndiGo, by the end of 2024, will offer business class on its flights on the busiest routes. It also said that it will launch a “tailor-made business product”. It is also eyeing to double its fleet size by 2030 while keeping tap on the cost, IndiGo’s chief financial officer, Gaurav Negi, told the Economic Times.
“Considering India’s soaring economy and the evolving aspirations of Indian society, it’s time for IndiGo to redefine premium travel in India, increasing the availability of this service for the nation. It will create a desired option for many who are aiming to travel business, perhaps for the first time in their lives,” said the airline in a statement.