IndiGo Becomes the World’s Second Fastest-Growing Airline in Seat Capacity

IndiGo Airlines has achieved a significant milestone by securing the position of the world’s second fastest-growing airline in terms of seat capacity, according to the latest report by the Official Airline Guide (OAG). In 2024, the airline recorded a 10.1% year-on-year growth, reaching a total of 134.9 million seats.

This growth places IndiGo just behind Qatar Airways, which registered a 10.4% increase in seat capacity over the same period. The report also highlights IndiGo’s dominance in flight frequency growth, its expanding international operations, financial performance, and future plans.

IndiGo’s Growth in Seat Capacity and Flight Frequency

Seat Capacity Growth

IndiGo’s seat capacity expanded by 10.1% YoY, making it the second-fastest growing airline globally. The airline’s aggressive expansion strategy has contributed to this remarkable growth, reflecting an increase in demand for both domestic and international travel.

World’s Fastest-Growing Airline in Flight Frequency

IndiGo not only ranked high in seat capacity growth but also secured the top position as the fastest-growing airline in terms of flight frequency. The airline recorded a 9.7% increase in flight frequency year-on-year in 2024, operating a total of 749,156 flights during the year.

These figures highlight IndiGo’s commitment to enhancing connectivity and meeting the growing demand for air travel, particularly in India’s domestic and international markets.

IndiGo’s Aircraft Orders and Fleet Expansion

Massive Aircraft Orders and Deliveries

IndiGo holds one of the largest aircraft orders globally, with over 900 aircraft in its pipeline. This places the airline in a strong position to expand its fleet and enhance operational capacity in the coming years.

In 2024 alone, IndiGo received 58 new Airbus aircraft, making it the largest recipient of Airbus deliveries during the year. These new aircraft will play a crucial role in supporting the airline’s expansion plans, particularly in the Middle East and Southeast Asia.

Challenges in Fleet Utilization

Despite the growth, IndiGo faces challenges in fleet utilization due to supply chain issues affecting aircraft maintenance and operations. The OAG report notes that approximately 80 of IndiGo’s aircraft remain inactive due to MRO (Maintenance, Repair, and Overhaul) supply chain problems.

IndiGo is actively working to address these issues to ensure optimal fleet utilization and maintain its strong growth trajectory.

IndiGo’s International Expansion Plans

Focus on Middle East and Thailand

While 88% of IndiGo’s capacity is dedicated to domestic operations, the airline is steadily expanding its international footprint. In 2024, the airline focused on strengthening its presence in the Middle East and Thailand, key regions for IndiGo’s growth strategy.

Future Plans: Long-Haul, Low-Cost Model

Looking ahead, IndiGo aims to expand into long-haul low-cost services. The airline is considering fast-tracking its long-haul expansion, with plans to introduce wet lease aircraft in 2025. This move aligns with the growing demand for affordable long-haul travel options, positioning IndiGo as a strong competitor in the global aviation industry.

IndiGo’s Financial Performance (Oct-Dec 2024)

Revenue and Profit Trends

Despite its operational success, IndiGo reported a net profit of ₹2,449 crore in the October-December 2024 quarter, reflecting an 18% decline compared to the same period in the previous year.

However, the airline’s revenue from operations surged by 14%, reaching ₹22,111 crore for the quarter. IndiGo’s total income also witnessed a 14.6% increase, touching ₹22,992.8 crore.

Increase in Operational Expenses

The airline’s total expenses for the quarter rose by 19.9%, amounting to ₹20,465.7 crore. This increase in expenditure impacted IndiGo’s net profitability, despite strong revenue growth.

IndiGo’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) saw a 0.7% year-on-year growth, reaching ₹5,178.6 crore.

Higher Load Factor and Passenger Growth

IndiGo’s load factor, which measures the percentage of available seating capacity used by passengers, stood at 86.9% in the October-December quarter. This marks an improvement from 85.8% recorded in the same period of the previous year, indicating strong demand and efficient seat utilization.

IndiGo Airlines’ Growth and Financial Performance – 2024