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In a bid to tap into the growing business travel segment in India, IndiGo, the country’s largest airline, has announced that it will launch a new tailor-made business product to cater to India’s busiest and business-specific routes. According to reports, the airline will introduce business class on its flights on selected routes.
On a day when the airline announced its fourth quarter and fiscal year 2024 results, this new announcement to launch Business Class on its flights is proof of its plan to expand its horizons and offerings after placing record aircraft orders last year. The recent announcement of the introduction of widebody aircraft is also proof of this. IndiGo is well-prepared to become a full-service airline from a budget carrier when it launched 18 years ago.
The new product will be available on the country’s busiest business routes and will be operational before the end of this year.
“Nearly 18 years ago, IndiGo revolutionized air travel in India by focusing on three customer promises: affordable fares, on-time performance and hassle-free and courteous service. Today – almost 18 years old and mature – it’s time to make the move next step in IndiGo’s evolution Given India’s rapidly growing economy and the evolving ambitions of Indian society, it is time for IndiGo to redefine premium travel in India, increasing the availability of this service to the country creating a desirable option for many for the purpose of business travel, perhaps for the first time in their lives,” the airline said in a statement accompanying the announcement.
The Business Class will be particularly available on the country’s busiest business routes and will be operational before the end of this year. More details about the product offering, launch date and routes will be revealed in August, around IndiGo’s birthday.
Sharing his views on the announcement, Pieter Elbers, CEO of IndiGo, said, “As India’s most preferred airline, we are constantly looking at innovating our service offerings for our millions of customers. Over the past eighteen years, the growth story of India and IndiGo have been closely linked. We believe that as India gears up to become the world’s third largest economy, it is our privilege to offer New India even more choices in their business travel. We are excited about this new phase and tailor-made product in IndiGo’s evolution and strategy and want to further give wings to the nation by connecting people and ambitions.”
IndiGo delivered another quarter of strong financial performance, driven by a range of initiatives and supported by a favorable external environment. For the quarter ended March 2024, IndiGo reported a net profit of INR 18,948 million.
For the year ended March 2024, IndiGo reported a net profit of INR 81,725 million.
For the year ended March 31, 2024, IndiGo witnessed significant growth compared to the previous year. Capacity increased by 21.8 percent to 139.3 billion, allowing it to carry a greater number of passengers, which increased by 24.7 percent to 106.7 million.
Despite a slight decline in revenue of one percent to INR 5.08, the occupancy rate saw a commendable improvement of 3.8 points to 85.9 percent. This growth is further reflected in the 26.6 percent increase in revenue from operations, reaching a total of INR 689,043 million.
Cost efficiency was also notable with a 17 percent reduction in fuel CASK and a 3.6 percent decrease in CASK ex fuel. Financial performance was robust with EBITDAR reaching INR 175,447 million and net profit of INR 81,725 million, a stark contrast to last year’s net loss of INR 3,058 million.
Elbers said the past year was a “year of many remarkable achievements and milestones” for the airline. “We reported our highest ever total income of approximately 712 billion rupees, with a net profit of approximately 82 billion rupees and a net profit margin of 11.9%. Fourth quarter financial results were positive, making all four quarters in FY24 profitable. The execution of our strategy has delivered consistent results for us as we have achieved the objectives we set for ourselves as a team at the beginning of this year,” he added while giving his thoughts on the results.
IndiGo is one of the fastest growing low-cost airlines in the world.
