IndiGo, India's largest airline by market share more than 50%, is also the world's seventh largest in terms of daily departures. The airline currently operates over 1,600 daily flights and has a domestic market share of more than 57%. With increased competition and the revival of Air India under Tatas' ownership, IndiGo is considering expanding its international operations.
IndiGo reported a loss of Rs 381.8 crore in the most recent quarter under review, excluding a foreign exchange loss of Rs 1,201.5 crore. The airline lost Rs 1,435.66 crore in the September quarter of last year.
IndiGo CEO Pieter Elbers stated that the September quarter marked the company's second consecutive quarter of exceeding pre-Covid capacity. "Despite a seasonally weak quarter, we saw relatively high yields and strong demand across the network." However, fuel prices and currency exchange rates have had a negative impact on our financial performance.
Increase in Capacity:
The airline reported a 75% increase in capacity and a 75.9% increase in passenger numbers to 1.97 crore in the September quarter. According to the release, the yield increased by 21% to Rs 5.07, while the load factor increased to 79.2%.
Pieter Elbers prioritized On-Time Performance (OTP), affordable fares, courteous and hassle-free service, and unparalleled network coverage. It will also prioritize the development of internal structures, people, and processes in accordance with the size of operations, customer base, and future goals.
"With more international aspirations, we will build on our strong foundation," he said. While fuel and currency remain challenges, IndiGo CFO Gaurav M Negi stated that "we are reasonably confident that we will return to operational profitability in the third quarter."
According to Sanjay Kumar, the airline's Chief Strategy and Revenue Officer, there is a strong recovery from all segments, including traction in international tourist arrivals and strong corporate demand.
Operating more than 1,600 daily flights requires "enormous operational discipline and innovation." according to the CEO. While noting that IndiGo's fleet utilization is very efficient, he stated that the Indian market has recently been recovering more quickly, and there is also robust demand. That is an important factor to consider when organizing resources and structuring the organization.