IndiGo Reports Significant Profit Drop Amid Currency Challenges

In a recent financial disclosure, IndiGo, India's leading airline, reported an 18% decline in its third-quarter profit, attributing the downturn to the impact of a weaker rupee. Despite a 14.6% increase in total income, rising from Rs 20,062 crore in Q3 FY24 to Rs 22,993 crore this fiscal, the airline's profit fell to Rs 2,449 crore from Rs 2,998 crore in the same period last year.

The airline's financial performance was further impacted by its dollar-denominated costs, such as lease rentals, which have become more expensive due to the rupee's depreciation. Despite these challenges, IndiGo's stock saw a slight increase, closing 0.6% up on Friday, even as the broader market experienced a 0.4% decline.

Expanding Horizons: IndiGo's Long-Haul Ambitions

Looking ahead, IndiGo is set to introduce long-haul flights this summer by wet-leasing wide-body aircraft. The airline has ordered twin-aisle Airbus A350s, expected to start arriving in 2027. In the interim, IndiGo plans to wet lease six Boeing 787s, deploying them on key international routes such as London, Paris, and Amsterdam, signaling its ambitions to expand its global footprint.