IndiGo continues its fleet expansion, orders 30 more Airbus A350s
What's the story
IndiGo, India's largest airline by market share, has placed an order for 30 additional Airbus A350-900 aircraft.
The latest order comes on top of the initial deal made last year for 30 such planes with a purchase option for another 70.
The new aircraft will be delivered starting from 2027, doubling IndiGo's wide-body fleet to a total of 60.
Expansion plan
CEO confirms strategic expansion
IndiGo's CEO Pieter Elbers confirmed the new order at a press conference.
He said, "It was last year that IndiGo signed a deal with Airbus for buying 30 Airbus 350 900s with 30 firm and 70 purchase rights, and today we're confirming the intention to confirm 30 out of those 70 also into a firm order."
He further added that an MoU would be signed immediately.
Acquisition strategy
IndiGo's ambitious aircraft acquisition strategy
IndiGo has over 900 planes on order, to be delivered in the coming years.
In June 2023, IndiGo had placed a record single aircraft order of 500 planes with Airbus.
This brought the total outstanding order book of A320 Family aircraft to nearly 1,000 units scheduled for delivery well into the next decade.
Strategic partnership
Orders strengthen strategic relationship with Airbus
IndiGo has said that these orders will take its strategic relationship with Airbus to a whole new level of depth, breadth, and size.
The airline hopes to expand and densify its unmatched network with the new aircraft.
This move also aligns with the Indian government's vision of making India an aviation leader.
Profit report
Financial performance and future prospects
IndiGo has posted a 62% on-year rise in net profit at ₹3,067 crore for the March quarter.
The growth was driven by a travel boom due to the Kumbh Mela and the wedding season.
However, for the fiscal year ending March 31, IndiGo reported an 11% decline in net profit at ₹7,258 crore.
Despite this dip over the full fiscal year, the company remains optimistic about its future growth trajectory with these new aircraft orders.