Detailed Narrative
Transformative FY24: Record Profitability and Scale
IndiGo delivered its best-ever year with INR 8,170 crores net profit (INR 8,890 crores ex-forex) on revenue of INR 71,200 crores (+27% YoY). EBITDAR surged 140% to INR 17,540 crores. The airline served 107 million passengers, grew capacity 21.8%, and reported 6 consecutive profitable quarters. FY24 performance was boosted by competitor capacity exits, strong yield environment, and benign fuel.
Business Class and A350 Orders Define Next Strategic Phase
IndiGo announced tailor-made business class for busiest metro routes launching before end CY2024, with details to be unveiled in August. Combined with 30 firm A350-900 widebody orders, 500 A320neo family order, and XLR deliveries from 2025, these form cohesive strategy toward becoming a global aviation player. Management positioned business class as natural evolution aligned with India's trajectory to 3rd largest economy.
AOG Situation Peaked but Resolution Timeline Unclear
AOG count stabilized at mid-70s with management indicating peak has been reached. FY24 saw 65 aircraft additions including 12 damp-leased to mitigate. Exceeded initial FY24 capacity guidance of north of mid-teens. FY25 capacity guided at early double digits, with Q1 expected to recover to pre-powder metal inspection capacity levels.
Cost Inflation Accelerating Across Multiple Line Items
CASK ex-fuel ex-forex rose 9% YoY in Q4 with management flagging high single-digit to low double-digit inflation in maintenance and airport charges for FY25. Airport control period shifts driving rental increases. Maintenance inflation linked to European/US indices running above historical levels. Management focused on cost optimization and expects capacity growth to help moderate unit costs.
International Expansion Reaching Critical Scale
International ASK share at 27%, contributing 20-25% of revenue. Network expanded to 33 international destinations from 18 Indian cities with 100+ direct routes. Codeshare passenger growth of 45% YoY across 8 partnerships. New codeshares with British Airways and MOU with Malaysian Airlines. Trajectory toward 30% international ASK share with XLR and widebody enabling further reach.