New Delhi: InterGlobe Aviation, the parent of the country’s largest airline IndiGo, on Wednesday posted its highest-ever fourth quarter profit after tax of Rs 3,067.5 crore, mainly helped by strong air travel demand. The company’s profit after tax in the three months ended March 2025 jumped 62 per cent from Rs 1,894.8 crore in the year-ago period. Its board has recommended a dividend of Rs 10 per equity share.
In the fourth quarter of the 2024-25 fiscal, IndiGo’s capacity increased 21 per cent to 42.1 billion while the number of passengers carried rose 19.6 per cent to 31.9 million, according to a release. Total income rose to Rs 23,097.5 crore in the fourth quarter of the 2024-25 financial year from Rs 18,505.1 crore in the same period a year ago.
While discussing the financial results, IndiGo CEO Pieter Elbers said the airline is fully compliant with all regulatory frameworks and regulations for operating flights with planes leased from Turkish Airlines and that it is for the government to decide on the renewal of the leases. The comments came against the backdrop of aviation watchdog BCAS, on May 15, revoking the security clearance for Turkish company Celebi Airport Services India Pvt Ltd in the “interest of national security”, days after Turkiye backed Pakistan and condemned India’s strikes on terror camps in the neighbouring country. Some online travel portals and associations have also issued advisories asking people not to visit Turkiye.
In the March quarter, IndiGo’s passenger ticket revenues climbed 25.4 per cent to Rs 195,673 million and ancillary revenues increased 25.2 per cent to Rs 21,525 million compared to the same period a year ago. “Driven by strong demand for air travel and execution of our strategy, for the financial year ended March 2025, IndiGo reported a healthy net profit of Rs 72,584 million. Excluding the impact of foreign exchange, IndiGo reported a net profit of Rs 88,676 million, maintaining similar strong performance to the last year. “For the quarter ended March 2025, IndiGo reported a net profit of Rs 30,675 million, the highest fourth quarter ever,” the release said.
The airline, which currently has a little over 64 per cent domestic market share, carried 118 million passengers in 2024-25. For 2024-25 fiscal, the airline’s profit after tax dropped 11.2 per cent to Rs 7,258.4 crore. The same stood at Rs 8,172.5 crore in the same period a year ago. First quarter of fiscal year 2026, IndiGo said the capacity in terms of ASKs (Available Seat Kilometres) is expected to increase by mid teens as compared to the first quarter of fiscal year 2025.
According to Elbers, the number of grounded aircraft is currently in the 40s, declining from the 50s in the fourth quarter and 60s in the third quarter. The planes are on the ground mainly due to issues with the Pratt & Whitney engines powering them.
On queries related to Pakistan airspace closure, Elbers said that over 34 flights have longer flying time of 20 minutes and that there is some financial impact. “We have two international stations being cancelled… we wish it was not there but IndiGo can live with it,” he said as he referred to the suspension of flights to Almaty (Kazakhstan) and Tashkent (Uzbekistan).
The daily flights to the two destinations from Delhi were suspended due to the aircraft’s operational range constraints “When the airspace restrictions are lifted, we will re-introduce our flights to Tashkent and Almaty,” Elbers said. To queries about the loss due to recent flight disruptions, the IndiGo CEO said that for about a week, around 170 flights were cancelled but it is difficult to mention about the exact loss.
“The traffic is returning… we are confident that we will see a recovery from June,” he added. The airline has a fleet of over 400 planes and operates more than 2,200 daily flights connecting domestic and international destinations. “We expect A321 XLRs to come in the current financial year, perhaps even before the end of this calendar year but that is work in progress. XLRs will come with two cabin configuration…,” Elbers said.
He declined to comment on a question about reports that rival Air India has asked the government to review IndiGo’s partnership with Turkish Airlines and said, “we move on serving our customers”. To a query regarding revised Flight Duty Time Limitation (FDTL) norms, Elbers said there will be an impact for domestic flights and for the first phase, there will be a low single-digit impact. The details about the low single-digit impact could not be immediately ascertained. The new FDTL norms are set to come into effect from June.
Meanwhile, Moody’s Ratings on Wednesday assigned a stable credit outlook for IndiGo. IndiGo’s Baa3 rating reflects its dominant market position in India’s domestic airline sector, cost competitive operations, strong financial metrics and excellent liquidity. At the same time, the rating incorporates IndiGo’s aggressive fleet expansion strategy for domestic and international business, aircraft groundings due to engine issues, near-term headwinds from the geopolitical landscape and its relatively short operating history, Moody’s Ratings said on Wednesday.
Separately, the airline on Wednesday announced that it will launch direct flights from Mumbai to Manchester and Amsterdam in July. “IndiGo had a total cash balance of Rs 481,705 million comprising Rs 331,531 million of free cash and Rs 150,174 million of restricted cash,” the release said. Shares of the company rose marginally to close at Rs 5,448 apiece on the BSE.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
On Wednesday Moody’s Ratings assigned a stable credit outlook for IndiGo Baa3 which reflects its dominant market share in India’s domestic airline sector, cost competitive operations and strong financial metrics. The stock of InterGlobe Aviation, the company for IndiGo, soared by 1.34% on Thursday afternoon. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
