Low-cost carrier IndiGo will launch a business-class product on some of its aircraft by the end of this year, in the latest diversification step from the expansion-minded Indian airline.
Chief executive Pieter Elbers announced the new offering during the carrier’s latest earnings call on 23 May, where he outlined a profitable 12 months for the carrier.
“Over the past 18 years, India’s and IndiGo’s growth story have been closely interlinked,” says Elbers. “We believe as India gears up to become the third largest economy in the world, it’s our privilege to provide [it with] even more options to choose from as [people] travel business.”
Full details of the business-class offering will released in August, Elbers states, but IndiGo says the “tailor made” product will be available on “the busiest and business routes of the nation” later this year.
The carrier’s all-economy-class fleet stood at 367 aircraft on 31 March this year, the vast majority of which are A320-family jets, alongside around 45 ATR turboprops.
The announcement comes weeks after IndiGo also announced its first foray into owning widebody aircraft, with a firm order for 30 Airbus A350-900s. It is yet to reveal details of the product it will offer on those jets, which it is due to starting receiving in 2027.
IndiGo continued its run of profitable quarters in the three months to 31 March 2024, recording an almost 50% year-on-year rise in EBITDAR to Rs44 billion ($574 million) and a doubling of its net profit to Rs19 billion. That was achieved on a 26% rise in revenues, to Rs178 billion.
It swung to a full-year net profit of Rs82 billion, compared with a net loss of Rs3.1 billion in the previous fiscal year.
The airline notes that it is managing to maintain its capacity plans through mitigation measures, despite aircraft “in the mid-70s” still being grounded for inspections of their Pratt & Whitney geared turbofan powerplants.
Capacity in the first quarter of fiscal year 2025 is expected to be up 10-12% year on year, it says.
IndiGo has almost 1,000 aircraft on order – mostly A320neo-family jets – giving it a pipeline of new aircraft well into the 2030s.
