IndiGo (InterGlobe Aviation Ltd) is on the verge of achieving a remarkable milestone in Indian aviation history: surpassing the magical $1 billion mark in net profit for the fiscal year FY24. This achievement marks a significant turnaround for the airline, which grappled with losses of 12,000 crore between 2020 and 2023. However, with five consecutive profitable quarters, IndiGo has demonstrated resilience and adaptability in a challenging market. As illustrated in the chart(Source-ET), the global aviation sector has experienced a positive trajectory in the post-pandemic era, buoyed by phenomena like revenge travel and favourable fuel costs. Today,IndiGo (InterGlobe Aviation Ltd) is the third-largest global airline by market cap, trailing only Delta Air Lines and Ryanair, putting India on the global aviation map. But will the party continue ? Uncertainties loom on the horizon. The recent expansion of Air India's capacity by 25% threatens to intensify competition and potentially drive down airfares, posing a challenge to IndiGo's profitability. But for now, let us revel in this extraordinary accomplishment and celebrate IndiGo (InterGlobe Aviation Ltd)'s historic feat!
I hope they reinvest in bringing back the consumer conference they have lost over the years , it's offering has to improve to sustain and keep luring traveller to make indigo the first choice currently it's the only choice and that's why this surge in profit , No Legible competition.
There is Huge Potential in Indian market which Airlines have yet to tap. AC train travellers need to be upgraded and pulled through the discounted pricing strategy. Air India coming into play will play a huge role in this upgrade there by surging the Air travel and balancing out the air and train travels.
After Jet Airways there is no competitor in the market and if Air India thrives in the domestic market then surely it will eat Indigo market share but Indigo already got position in tier 2 and middle class fliers which will continue. Hence, in the near future Indigo may feel some competition but will continue to grow and stay profitable.
No-frills and a die hard focus on what really matters, is key to their success. They understood long ago that timeliness is the real big thing that matters to travellers... Other things like comfort, safety, etc are a given anyway. Every staff in their delivery chain understands and acts to deliver timeliness...
The sky is 💙 and Indigo 🔵 indeed. 62.5% market cap and over 3000 Cr in profit this quarter, marking 5th straight quarter of profit... But is it the KLM ex CEO magic ✨ only or the fact that others are faltering 🤔 Good to see this article here as I was onboard indigo flight ✈️ and had this in mind as well !!
Given the recent expansion of Air India's capacity, how will IndiGo (InterGlobe Aviation Ltd) maintain its profitability and continue to thrive in the competitive Indian aviation market?
In a country where we don’t have much choice when it comes to the airline we choose, it’s heartening to see Indigo maintaining and delivering to their USP. More power to them as they continue to bring us everywhere on time - the most useful benefit any brand can offer us in today’s time-constrained world
Good Insights.... Can see huge growth potential in coming years
Impressive accomplishment, IndiGo! To navigate future challenges and further fuel your growth, consider leveraging predictive analytics for dynamic pricing strategies. This approach not only optimizes revenue but also enhances customer satisfaction by offering value-based pricing.