HT Digital,
New Delhi, May 23: On Thursday, low-cost carrier IndiGo unveiled its plans to enter the business class segment, with services expected to launch by the end of the year. The airline will introduce a custom-tailored business product on select routes, as detailed in an exchange filing on May 23. Full details of the business class offerings are anticipated to be disclosed by August.
Pieter Elbers, CEO of IndiGo, stated, “Over the past 18 years, India’s and IndiGo’s growth story have been closely interlinked. As India prepares to become the third-largest economy in the world, it’s our privilege to offer more options to the New India for business travel. We are excited about this new phase in IndiGo’s evolution and strategy, aiming to further connect people and aspirations.”
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The announcement coincides with a remarkable financial performance by InterGlobe Aviation Ltd, IndiGo’s parent company, which reported a 106% year-on-year increase in net profit for Q4 FY24, reaching Rs 1,894.80 crore, up from Rs 919.20 crore in the same period last year. The airline expects a 10-12% increase in June quarter capacity, measured in available seat kilometers (ASK), compared to the first quarter of fiscal year 2024.
IndiGo’s revenue from operations for the fourth quarter rose by 25.9% year-on-year to Rs 17,825.30 crore, excluding foreign exchange losses. This resulted in a profit of Rs 2,060 crore, a substantial increase from Rs 666.40 crore in the previous year. Passenger ticket revenues during the quarter were Rs 15,600 crore, reflecting a 25.5% rise.
Ancillary revenues also saw an 18.9% year-on-year increase, reaching Rs 1,719.40 crore. InterGlobe Aviation noted a 14.4% year-on-year rise in capacity to 34.8 billion, with passenger numbers growing by 14% to 26.7 million.
IndiGo maintained a robust total cash balance of Rs 34,737 crore, comprising Rs 20,823 crore in free cash and Rs 13,914 crore in restricted cash. The capitalised operating lease liability stood at Rs 43,488 crore, with total debt, including the capitalised operating lease liability, amounting to Rs 51,280 crore.
The introduction of business class services marks a significant evolution in IndiGo’s strategy, aiming to cater to a broader range of travelers and capitalize on India’s growing economy.
