IndiGo sees significant growth opportunities despite rising fuel costs and other pressures facing the aviation industry, CEO Willie Walsh said on Monday, adding that the airline would focus on maintaining a competitive cost base while navigating the challenges.At his first in-person briefing since taking charge as chief executive in August, Walsh said IndiGo expected to begin receiving wide-body Airbus A350 aircraft from the second quarter of 2028.He said the airline had all the necessary ingredients to succeed in the long-haul market.“We see incredible opportunities,” Walsh said, while acknowledging the difficult operating environment for airlines.The industry is facing pressure from higher fuel costs, which have affected airline profitability. IndiGo reported a net loss of Rs 1,879.1 crore in the July-September quarter, with elevated fuel expenses and rupee depreciation weighing on its financial performance.“The situation is challenging for the industry and we will continue to navigate through the challenges,” Walsh said.
IndiGo focuses on costs amid elevated fuel expenses
The airline has also reduced capacity in response to the operating pressures. In the September quarter, its fuel expenses rose to Rs 9,966.8 crore, an increase of 67.2% from Rs 5,961.8 crore in the corresponding period last year.IndiGo’s capacity, measured in available seat kilometres, declined 1% to 40.8 billion during the quarter.Despite a 4.7% fall in passenger numbers to 2.7 crore, passenger ticket revenue increased 29.3% to Rs 20,652.2 crore, while the load factor declined 2.2 percentage points to 80.3%.Walsh had said last week that the airline expected elevated fuel costs to persist for some time and would continue exploring internal measures to offset the increase.The airline’s September-quarter loss was its third consecutive quarterly loss, as per the earlier report. Its total income, however, rose 24% year-on-year to Rs 24,311.9 crore.
A350 deliveries and Navi Mumbai airport plans
On IndiGo’s expansion plans, Walsh said the airline expected deliveries of its wide-body A350 aircraft to begin in the second quarter of 2028. He said the carrier was well placed to enter the long-haul market.Walsh also described the upcoming Navi Mumbai airport as a significant opportunity for the airline. He said IndiGo’s decision to shift some of its international flights to the new airport had been taken in the airline’s interest.IndiGo currently operates more than 2,100 flights daily and has an operational fleet of over 400 aircraft.As of September 30, the airline had a fleet of 442 aircraft and operated a peak of 2,020 daily flights during the July-September quarter, including non-scheduled services.The airline’s cash balance stood at Rs 52,685.4 crore at the end of September, comprising Rs 39,929 crore in free cash and Rs 12,756.4 crore in restricted cash. Its total debt, including capitalised operating lease liabilities, was Rs 87,303.1 crore, the report said.
