IndiGo earned its highest quarterly revenue to date during the same quarter the airline broke the record for the largest-ever aircraft order.
In Q1 FY2023/2024, IndiGo earned INR171.6 billion ($2 billion) in revenue, which resulted in the low-cost carrier ending the period with a net profit of INR30.8 billion ($373.8 million). Both metrics were record-breaking quarterly results for the airline, which was established on August 4, 2006.
“We produced strong operational performance and welcomed the highest number of quarterly passengers which enabled us to generate the highest ever quarterly revenue and net profit for the quarter ended June 2023,” Pieter Elbers, the chief executive officer (CEO) of IndiGo, said.
Elbers added that after the 500 aircraft-strong order from Airbus during the Paris Air Show 2023, the airline’s order book grew to around 1,000 aircraft.
The Dutch executive also expressed his “deepest gratitude to all our loyal customers and dedicated 6E [IndiGo’s International Air Transport Association’s (IATA) code – ed. note] stars for the progress we have made towards our (new) growth strategy – towards new heights and across new frontiers”.
At the end of Q1 FY2023/2024, IndiGo had 316 aircraft, including 166 Airbus A320neo, 20 A320ceo, 87 A321neo, two A321P2F, 39 ATR 72-600, and two Boeing 777-300ER aircraft on a damp lease from Turkish Airlines.
In addition, during the quarter it reassessed the useful economic life of 14 Airbus A320ceo aircraft from 20 to between 13 and 16 years and their residual value based on several factors, including “technological advancements and the expected usage”. As a result, IndiGo booked an additional depreciation charge of INR 362.1 million ($3.9 million).
However, the low-cost carrier has had to deal with a lack of spare engines for its Airbus A320neo family fleet, which is powered by the Pratt & Whitney PW1100G engine. According to ch-aviation.com data, the airline’s 45 A320neo and A321neo aircraft are either currently stored or in maintenance.
In late July 2023, IndiGo said that it was working “closely with P&W to assess and minimize any potential impact to our fleet”, after Pratt & Whitney’s parent company, RTX, said that a significant number of PW1100Gs will have to be removed for inspections.