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Informist, Tuesday, Nov. 4, 2025

 

--InterGlobe Aviation: Fleet ready to meet demands of seasonally strong Q3
--CONTEXT: InterGlobe Aviation mgmt's comments in post-earnings analyst call
--InterGlobe Aviation: Rupee depreciation impacted co's profitability in Q2
--InterGlobe Aviation: Stepping up growth efforts in second half of FY26
 

By Anand JC and Ashutosh Pati

 

MUMBAI – InterGlobe Aviation Ltd., which operates budget carrier IndiGo, said Tuesday that the company will step up its growth efforts in the second half of 2025-26 (Apr-Mar), which is key to its long-term plans. The company estimates its capacity to grow in early teens in FY26, slightly higher than its previous guidance of an early-double-digit growth in capacity, its management told analysts in a post-earnings conference call.

 

When deciding its long-term plans for India, the company said it assessed the correlation between the growth in India's GDP and growth of passenger demand. "India is still largely underserved, looking at the number of planes, looking at the seats per capita, looking at the international seats. India is not only the largest population in the world but also the largest diaspora in the world," said Pieter Elbers, chief executive officer of InterGlobe Aviation.

 

When it comes to seats per capita, India has plenty of headroom to grow when compared to mature markets such as the US or Europe, or even markets like China and Indonesia, the management said. InterGlobe Aviation has been planning its long-term capacity growth based on the fact that India's economy is growing rapidly with an increased appetite for air travel and that the market here is underserved. These factors have also played an important role in the company's fleet planning, wherein it has ordered 500 aircraft -- the largest orderbook among its peers.

 

InterGlobe Aviation recorded a flattish capacity growth in its domestic operations, but a much more robust 26% on-year growth in international capacity in the seasonally weak September quarter. InterGlobe Aviation disclosed its Jul-Sept earniongs post market hours. It reported that its net loss widened on year to INR 26.14 billion in the September quarter on revenues of INR 185.55 billion.

 

InterGlobe Aviation's profitability in the September quarter was impacted by a weakness in the rupee against the dollar. "The tariff imposition on India and the continued FPI (foreign portfolio investors) outflow in the second quarter led to a sharp depreciation of the rupee of around 4% at the quarter's end," Elbers said. 

 

"As we enter the seasonally strong December quarter, our fleet and operational plans have been scaled up to meet the festive and peak travel seasonal demand," Elbers said. "On the revenue side, based on the trends of October, we are estimating a flattish to a slight growth in the passenger unit revenue price for the third quarter (Oct-Dec) as compared to the high base during the same period last year."

 

InterGlobe Aviation said that a "disproportionate" increase in its capacity will be done on international routes. "We will continue to kind of grow capacity on the domestic side, subject to the opening of some of these airports that have got deferred out while we were hopeful that they will open up a little earlier than anticipated," an executive from the company said. "So in short, we will deploy capacity where there's an opportunity and we feel it's the right place to go," the executive added.

 

The executive said it is part of the company's strategy to turn into a global operator from a largely domestic operator. "And since we have been doing it (following the strategy), we have kind of doubled our international footprint from a little over 20 destinations three years back to 45-ish today. And we continue to build on that," the company said. 

 

On Tuesday, its shares closed at INR 5,637 on the National Stock Exchange, down 1% from the previous close.  End

 

Edited by Tanima Banerjee

 

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