IndiGo profit doubles on higher traffic, increased capacity

NEW DELHI: The country’s largest airline IndiGo on Thursday reported more than doubling of its net profit to Rs 1,894.8 crore for the quarter ending March 2024 and announced introduction of business class in select routes this year.

The strong performance in the quarter, which also marks six consecutive quarters of profitability, was fuelled by higher traffic, increased capacity and a favourable external environment. For the year ended March 2024, the airline posted the highest annual net profit of Rs 8,172.5 crore on record total income of Rs 18,505.1 crore.

After flying for nearly 18 years, the airline will introduce business class in select routes this year as it seeks to provide more options for passengers amid rising economic growth.

The airline will launch a “tailor-made business product”, the details of which will be unveiled around August that will also mark the 18th anniversary of the carrier.

The latest announcement also comes less than a month after the profitable carrier said it would buy 30 wide-body aircraft. In the first quarter of the current financial year, the airline has projected the capacity in terms of ASK to rise by 10-12 per cent compared to the year-ago period.

Available Seat Kilometre (ASK) is an indicator of capacity. InterGlobe Aviation, the parent of IndiGo, recorded a profit after tax of Rs 1,894.8 crore for the fourth quarter of 2023-24 compared to Rs 919.2 crore in the same period a year ago, a release said.