IndiGo's Resilient Performance Amidst Currency Challenges

IndiGo, India's largest airline, reported an 18.3% decline in post-tax profit to Rs 2,448.8 crore for December 2024 due to foreign exchange losses, despite a 14.6% revenue jump. The company plans to expand its fleet through wet leasing and aims to reduce aircraft groundings. CEO Pieter Elbers emphasized their strategic approach amid fluctuating currency conditions.

IndiGo, the leading airline in India, reported a significant dip of 18.3% in its post-tax profit, which fell to Rs 2,448.8 crore for the quarter ending December 2024. This decline comes despite a marked rise in revenue spurred by increased capacity and passenger numbers, counteracted by adverse foreign exchange impacts.

The airline, which operates a fleet comprising 437 aircraft, plans to introduce wet leased planes to facilitate long-distance routes, targeting a reduction in grounded aircraft next financial year. CEO Pieter Elbers highlighted the strategic measures they are employing to address the ongoing currency volatility while still achieving operational success.

IndiGo's latest figures reflect a robust market demand and efficiency improvements despite challenges. The company reported a net profit of Rs 38.5 billion, excluding currency shifts, with expectations to extend international operations as hedging strategies are enhanced to mitigate foreign exchange risks.

(With inputs from agencies.)