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In a bid to tap the growing business travel segment in India, country’s largest airline IndiGo has announced that it will launch a new tailor-made business product to cater India’s most busiest and business-specific routes. According to reports, the airline will launch buiness class on its flights on select routes.
On a day when the airline released its fourth quarter and fiscal year 2024 results, this new announcement to launch Business Class on its flights is evidence of its plan to expand its horizon and offerings after placing record aircraft orders last year. The recent announcement of inducting widebody aircraft is also a testament to that. IndiGo is well poised to become a full-service carrier from a budget carrier when it started operations 18 years ago.
The new product will be available on the busiest business routes of the nation and will be operational before the end of this year.
“Almost 18 years back, IndiGo revolutionised air travel in India by focusing on 3 customer promises of affordable fares, on-time performance, and hassle-free and courteous service. Today – almost 18 years and all grown up – it’s time to take the next step in the evolution of IndiGo. Considering India’s soaring economy and the evolving aspirations of Indian society, it’s time for IndiGo to redefine premium travel in India, increasing 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,” the airline said in a statement making the announcement.
Notably, the business class will be available on the busiest business routes of the nation and will be operational before the end of this year. Coming August, around IndiGo’s anniversary, more details on product offering, launch date and routes will be unveiled.
Sharing his thoughts on the announcement, Pieter Elbers, CEO, IndiGo said, “As India’s most preferred airline, we are constantly looking at innovating our service offering for our millions of customers. Over the past 18 years, India’s and IndiGo’s growth story have been closely interlinked. We believe as India gears up to become the third largest economy in the world, it’s our privilege to provide the New India even more options to choose from as they travel business. We are excited with this new phase and tailor-made product in IndiGo’s evolution and strategy and aim to further give wings to the nation, by connecting people and aspirations.”
IndiGo delivered another quarter of strong financial performance led by a range of initiatives and supported by 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.
A user-generated poll conducted by Hunch on Gen Z revealed their favourite airline in India and IndiGo has topped the list with 42.9 per cent of votes, Air India got 27.8 per cent, and Vistara received 27.3 per cent and were placed second and third, respectively. The poll highlights a shift in the airline industry where Gen Z’s preferences for affordability, comfort, technology and sustainability are becoming increasingly important.
For the year ended March 31, 2024, IndiGo witnessed significant growth compared to the previous year. The capacity surged by 21.8 per cent to 139.3 billion, accommodating a higher number of passengers which increased by 24.7 per cent to 106.7 million.
Despite a slight one per cent decrease in yield to INR 5.08, the load factor saw a commendable improvement of 3.8 points, reaching 85.9 per cent. This growth is further reflected in the 26.6 per cent increase in Revenue from Operations, totaling INR 689,043 million.
Cost efficiency was also notable with a 17 per cent reduction in fuel CASK and a 3.6 per cent decrease in CASK ex fuel. The financial performance was robust with EBITDAR reaching INR 175,447 million and a net profit of INR 81,725 million, a stark contrast to the previous year’s net loss of INR 3,058 million.
Elbers said that the last year for the airline was a ‘year of many remarkable achievements and milestones’. “We reported our highest ever total income of around 712 billion rupees with a net profit of around 82 billion rupees and a net profit margin of 11.9%. The 4th quarter financial results were positive, making it all four quarters in FY24 profitable. The strong execution of our strategy has yielded consistent results for us as we achieved the targets that we had set for ourselves as a team at the beginning of the year,” he added sharing his thoughts on the results.
IndiGo is amongst the fastest growing low-cost carriers in the world.
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