InterGlobe Aviation, the parent company of IndiGo, unveiled its third-quarter results for the financial year 2025 on Friday, showcasing both strong operational growth and some challenges that are common in the aviation industry. While the company reported a dip in net profit by 18%, totaling Rs 2,449 crore compared to Rs 2,998 crore in the same period last year, its overall financial performance demonstrated resilience in the face of global economic factors. Despite the profit decline, revenue from operations saw a robust 14% increase, rising to Rs 22,111 crore, up from Rs 19,452 crore in the corresponding quarter of the previous fiscal year (FY24), reflecting solid business growth and increasing demand for air travel in India.
A closer look at the airline's performance reveals that IndiGo achieved a slight yet notable improvement in its unit passenger revenue (PRASK), which grew by 0.3%, reaching Rs 4.72. This modest increase speaks to the carrier’s ability to better manage passenger revenue generation, even as it continued to expand its capacity and network. The company’s passenger ticket revenues surged by an impressive 12.3%, amounting to Rs 19,267.8 crore. In addition, ancillary revenues, which include income from services such as seat selection, extra baggage, and other add-ons, showed an even stronger growth of 22.3%, totaling Rs 2,153.1 crore.
One of the standout operational achievements for IndiGo in this quarter was its growth in key metrics such as available seat kilometers (ASK) and revenue passenger kilometers (RPK). The airline's ASK increased by 12% year-on-year, reaching 40.8 billion, which indicates that IndiGo has been successfully expanding its capacity. Revenue passenger kilometers, a critical metric that reflects the distance traveled by paying passengers, grew by 13.5%, amounting to 35.5 billion. This performance was a result of the carrier’s increasing passenger load, with its load factor improving to 86.9%, up from 85.8% in the same quarter of the previous year. This uptick in load factor demonstrates that IndiGo's ability to fill its flights with paying customers is strengthening, making the airline more efficient in its operations.
IndiGo’s continued fleet expansion remains a core component of its strategy to maintain market leadership in India’s highly competitive aviation market. By the end of the third quarter, the airline had grown its fleet to 437 aircraft, up from 410 in the previous quarter. This fleet expansion is part of IndiGo's long-term strategy to increase its domestic and international presence. Additionally, the airline reached another operational milestone by operating a peak of 2,200 daily flights, including both scheduled and non-scheduled operations. This operational scale demonstrates the airline’s capacity to meet growing passenger demand across the country and beyond.
A key strength for IndiGo is its financial position, which has enabled it to weather the challenges of the aviation industry. As of December 31, 2024, the airline’s cash reserves stood at a robust Rs 43,781 crore, marking a significant 35% increase from the same time last year. This healthy cash balance provides the airline with the financial flexibility to navigate volatile fuel prices and global economic uncertainties, while also investing in fleet expansion and service improvements.
In a statement following the announcement of the results, Pieter Elbers, the CEO of InterGlobe Aviation, expressed confidence in the company’s trajectory, noting, “We delivered a strong third quarter of financial year 2025, both operationally and financially. Results were driven by robust demand in the market and our ability to cater to that demand supported by lower fuel prices.” Elbers also highlighted several significant milestones reached during the quarter, including the operation of a record 2,200 daily flights and the servicing of a record 31.1 million passengers.
Elbers reiterated the company's commitment to continued growth, stating that the airline is focused on expanding its network and improving its service offerings to meet the evolving needs of passengers. As the demand for air travel continues to grow across both domestic and international markets, IndiGo aims to remain at the forefront of the aviation sector by expanding its reach and improving its operational efficiency. The airline’s strategy also includes enhancing customer satisfaction by offering convenient options and maintaining competitive pricing, which have been key drivers of its success in the low-cost carrier market.
Looking ahead, IndiGo is optimistic about maintaining its growth momentum, as it continues to adapt to changing market conditions and deliver quality service to its ever-expanding customer base. As travel demand in India and globally remains strong, IndiGo's focus on expansion, profitability, and customer service is likely to reinforce its position as one of the leading airlines in the country.
