‘We have turned the corner’: IndiGo’s turbulent ride with grounded aircraft is over
IndiGo has overcome major challenges and is seeing increased domestic air travel demand, according to CEO Pieter Elbers. The number of grounded planes due to Pratt & Whitney engine issues is expected to drop below 50 by March 2025.
IndiGo has moved past the worst of its challenges, including grounding woes. Additionally, the low-cost airline is witnessing a surge in domestic air travel demand.
“We’ve turned the corner,” Chief Executive Officer Pieter Elbers said in an interview with Bloomberg Television on Tuesday, adding that the company is expecting to reduce the number of grounded planes by next year.
Reduction of grounded aircraft to less than 50 by March 2025
Giving an update on its grounded aircraft woes, IndiGo said that it is planning to reduce the number of grounded aircraft to less than 50 by March 2025, down from a peak of more than 70 by March 2025, Elbers told Bloomberg TV.
Operated by InterGlobe Aviation Ltd, IndiGo has posted a surprise loss in its first two years, as a result of higher fuel bills and rising maintenance cost.
Elbers said he expects a “very positive” peak travel season in India and that there’s a “healthy growth pattern” in bookings.
“We see very positive momentum again,” he said.
IndiGo Q2FY25 results
Reducing the number of grounded aircraft was among the few positive updates the company shared in its Q2FY25 results, which were released on Monday. The airline reported weaker-than-expected earnings, posting a net loss of ₹986.7 crore in the September quarter on headwinds from plane groundings and higher fuel costs.
Also Read | Could softening demand spoil the IndiGo party?
In response to dismal company earnings, IndiGo's share price plunged 8 percent to close at ₹4,015.50 apiece on the BSE on Monday. During the day, it tanked 13.42 percent to ₹3,778.50. The company's market capitalisation (mcap) eroded by ₹13,481.88 crore to ₹1,55,107.61 crore on Monday.
The downward trend on InterGlobe Aviation Ltd stock price continued the next day, as the stock was trading 0.45% lower at ₹3997.60 apiece on Tuesday at 10:20 am.
IndiGo became the first Indian airline to have more than 400 aircraft. On Monday, the airline said the number of grounded aircraft has reduced to the high 60s from mid 70s and will further come down to the sub-60 level by the year-end.
(With inputs from Bloomberg and PTI)
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First Published:29 Oct 2024, 09:09 AM IST
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