The largest low-cost airline in India, IndiGo has plans for purchasing multiple new Airbus A320neo aircraft in the future. Saying the last few months have not been good for the aviation industry would be a massive understatement of the situation. Airlines are currently strapped off cash, but the positive thing is, things are indeed picking up for the industry. Talking about IndiGo, the airline has estimated it would reach approximately 80% of its normal domestic capacity by the end of December 2020. It would suggest an even better performance for the airline in the new year — more details on the story ahead.
IndiGo Hopes to Reach 100% Domestic Capacity in the New Year
As per the estimates given by IndiGo, the airline should reach its 80% normal domestic capacity by the end of December. Following this, if things keep going at the same pace they are now, the airline would easily achieve 100% of its normal domestic capacity in the year 2021.
According to a report from Mint, IndiGo’s Chief Executive Officer (CEO), Ronojoy Dutta, said that the airline is in track to achieving 100% normal domestic capacity by the end of 2021. For the unaware, IndiGo posted a loss of $162.45 million for the second quarter of the financial year ending on September 30, 2020.
IndiGo said that it was expecting the domestic capacity to be around 60% during the third quarter, but in a surprising turn of events, the Indian government lifted it to 70% and then 80% in the last week. In June 2020, the airline said it is looking to cut costs of up to 40 billion rupees ($650 million) and fasten the process of returning the old aircraft to the leasing companies.
However, IndiGo is not going to stop the deliveries of new Airbus A320neo aircraft. It is interesting to see how confident the IndiGo looks. At a time when all the airlines are taking a step back on the deliveries of the new aircraft, IndiGo is not. The airline has expressed that it does not intend to slow down on the deliveries of new aircraft now.