India’s largest airline, IndiGo, operated by InterGlobe Aviation, has reported a stellar performance for the fourth quarter of the 2024-25 financial year (January-March 2025), with a consolidated net profit soaring 62% year-on-year to ₹3,067.5 crore, up from ₹1,894.8 crore in the same period last year. This record-breaking quarter, driven by robust travel demand, operational efficiency, and strategic cost management, marks IndiGo’s highest-ever Q4 profit, solidifying its dominance in the Indian aviation market.
A Surge in Travel Demand Fuels Growth
The airline’s impressive financial results were propelled by a significant uptick in air travel, particularly during the Mahakumbh in Prayagraj and an extended wedding season, which boosted passenger numbers. IndiGo carried 31.9 million passengers in Q4 FY25, a 19.6% increase from 26.6 million in the same quarter of the previous year, commanding a market share of 64.3%, up from 60.3%. The airline also expanded its capacity by 21% to 42.1 billion available seat kilometers (ASK), reflecting its ability to meet growing demand. Total revenue from operations rose 24.3% to ₹22,151.9 crore, compared to ₹17,825.3 crore in Q4 FY24, with passenger ticket revenues climbing 25.4% to ₹19,567.3 crore and ancillary revenues increasing 25.2% to ₹2,152.5 crore.
IndiGo’s CEO, Pieter Elbers, highlighted the airline’s operational achievements, noting, “In the fourth quarter, we served the highest number of passengers in any quarter. We also posted the highest fourth-quarter profit for any year since our inception.” The airline operated a peak of 2,304 daily flights, including non-scheduled services, underscoring its robust network expansion.
Strategic Cost Control and Operational Efficiency
Despite challenges such as high fuel costs, IndiGo’s focus on cost control and operational efficiency contributed significantly to its profitability. The airline’s earnings before interest, tax, depreciation, amortization, and rent (EBITDAR) surged 57% to ₹6,948.2 crore from ₹4,412.3 crore, with EBITDAR margins expanding to 31.4% from 24.8%. Passenger yields, a key profitability metric, improved by 2.4% to ₹5.32 per kilometer, and the load factor rose to 87.4%, indicating strong capacity utilization. Notably, IndiGo reduced the number of grounded aircraft, which had been a challenge in previous quarters, further enhancing operational performance.
However, the quarter was not without headwinds. Fuel costs remained a significant expense, with the cost per available seat kilometer (CASK) at ₹4.51, slightly down from ₹4.62 in Q4 FY24, while revenue per available seat kilometer (RASK) improved to ₹5.26 from ₹5.14. The airline’s total debt also increased by 30.3% to ₹66,809.8 crore, though its cash reserves grew by 38.7% to ₹48,170.5 crore, including ₹33,153.1 crore in free cash, providing a strong liquidity buffer.
Dividend Declaration and Future Outlook
Adding to the positive news, IndiGo’s board recommended a dividend of ₹10 per equity share, subject to shareholder approval at the upcoming Annual General Meeting, signaling confidence in the airline’s financial health. This move is likely to be well-received by investors, as it reflects IndiGo’s commitment to delivering shareholder value.
Looking ahead, IndiGo remains optimistic about its growth trajectory. Despite a full-year net profit dip of 11.2% to ₹7,258 crore for FY25, attributed to temporary demand moderation due to elections and a heatwave in the first half of the year, the airline’s strategic initiatives, including fleet expansion and network growth, position it well for future success. IndiGo’s fleet stood at 434 aircraft at the end of Q4 FY25, slightly down from 437 in the previous quarter, but the airline continues to invest in modernizing its fleet and expanding its reach to 88 domestic and 31 international destinations.
Conclusion
IndiGo’s Q4 FY25 results highlight its resilience and ability to capitalize on India’s booming aviation market. With a record-breaking profit, strong passenger growth, and strategic operational improvements, the airline is flying high. As IndiGo continues to navigate challenges like fuel costs and fleet management, its focus on cost efficiency and market dominance ensures it remains a key player in the global aviation landscape.
Reliable Sources: Business Standard
