TBM Staff - Mumbai
On August 5, low-cost carrier IndiGo announced the launch of a new business product tailored for the country’s busiest and most frequented business routes. The service, which will be available on 12 metro-to-metro routes, is part of the airline’s 18th-anniversary celebrations on August 7. This offering includes special meals curated by The Oberoi’s and starts at a fare of INR 18,018.
Pieter Elbers, CEO, IndiGo, unveiled the airline’s new business class service, ‘IndiGoStretch,’ which will initially be available on the Delhi-Mumbai route to attract premium travellers. This move positions IndiGo to compete with Tata Group-owned Air India, Air India Express, and Vistara, which also offer business class seats. At a press conference, IndiGo’s founder Rahul Bhatia expressed his emotional connection to the airline’s journey, emphasising the company’s commitment to providing affordable fares, timely performance, and excellent service.
Bhatia also addressed recent speculations following his sale of a 2% stake in InterGlobe Aviation Ltd, IndiGo’s parent company. He reassured stakeholders that he and InterGlobe are committed to the airline’s future, stating, “The dream was to create an airline that our country would be proud of.” Pieter Elbers, CEO, highlighted IndiGo’s growth, noting that the airline now operates over 2,000 flights across 88 airports and has served 600 million customers since 2006. To celebrate its anniversary, IndiGo announced an 18% discount on flights for the next four days with the code ‘HAPPY18.’
In financial news, InterGlobe Aviation Ltd reported an 11.7 percent year-on-year decline in first-quarter profit for FY2024-25, with a profit after tax of INR 2,728.8 crore compared to INR 3,090.6 crore in the same period last year. However, the airline’s revenue from operations increased by 17.3% to INR 19,570.7 crore in the June 2024 quarter. Passenger ticket revenues rose by 10% to INR 16,501.9 crore, while ancillary revenues grew by 13.9% to INR 1,763.4 crore. IndiGo reported a total income growth of 18%, reaching INR 20,250 crore, and a net profit of INR 2,730 crore, achieving a solid margin of around 14%.
