IndiGo Returns to Profitability, Eyes Early Long-Haul Launch

IndiGo, India's largest airline, has returned to profitability in the third quarter of fiscal 2025, reporting a net profit of INR 24.5 billion ($285 million). The airline's strong performance can be attributed to its strategic expansion of fleet and network, as well as the introduction of its 'IndiGo Stretch' business class service. With a market share of 64.4% in the domestic aviation sector, IndiGo is well-positioned to capitalize on the growing demand for international travel and launch its long-haul operations earlier than expected.

IndiGo's expansion of its fleet to 437 aircraft, including next-generation A320 NEOs and long-range B777s, has allowed the airline to increase its network to 89 domestic and 34 international destinations. The airline plans to reach 40 international destinations by the end of the year, catering to the growing demand for both domestic and international travel. This expansion has contributed to IndiGo's robust passenger numbers, with the airline serving a record-breaking 31.1 million passengers during the quarter, a 13% increase from the same period last year.

The introduction of the 'IndiGo Stretch' business class service has further enhanced the airline's revenue growth and market competitiveness. The service, which offers a more spacious and comfortable seating arrangement, priority check-in, boarding, and baggage handling, as well as complimentary meals and beverages, has been well-received by passengers. IndiGo plans to deploy a fleet of around 45 aircraft with this service on 10 additional metro-to-metro routes across the country by the end of 2025, contributing to the airline's overall revenue growth.

IndiGo's return to profitability and its expansion plans align with the growing demand for international travel in India. The airline is actively pursuing regulatory approvals and interim measures to integrate long-range aircraft into its fleet, ensuring it can cater to the burgeoning demand for long-haul travel. Despite potential challenges such as supply chain disruptions and the need for regulatory approvals, IndiGo is optimistic about its ability to cater to the demand in the long-haul markets by leveraging secondary market capacity.

In conclusion, IndiGo's return to profitability and its expansion plans, particularly the addition of long-range aircraft, align with the growing demand for international travel in India. The airline's introduction of the 'IndiGo Stretch' business class service is expected to have a positive impact on passenger experience, revenue growth, and market competition, further strengthening its position in the Indian aviation market. As the airline continues to grow and adapt to the evolving needs of Indian consumers, it is well-positioned to capitalize on the opportunities presented by the expanding international travel market.