IndiGo - financial performance FY 2015-2020
Despite being a market leader in the Indian air carrier industry, IndiGo reported a loss before tax of nearly 2.75 billion rupees at the end of the fiscal year 2020. The company had significant losses especially in the last quarter of the financial year 2020, due to national lockdown on account of COVID-19 pandemic. This was an exception compared to the performance in previous years, where profits continually and significantly grew from 13 billion rupees in the fiscal year 2016 to over 31.2 billion rupees in the financial year 2018.
Tough year for Indian air-carriers
According to IndiGo’s CEO, 2019 was a year of two halves – the first involving declines resulting in losses due to high fuel prices and a weak rupee, in addition to fierce competition. Jet Airways’ declaration of bankruptcy earlier that year also had an impact on the industry as other companies tried to fill in its gaps. IndiGo hired 285 pilots from the Jet Airways staff and was looking to increase those numbers further.
Reaching greater heights
As part of expanding its wings, IndiGo launched international flights in 2011, five years after being in operation. This, along with fleet development, made the private-owned budget carrier one of the fastest-growing in 2013, after Indonesian Lion Air . A couple of years later, Airbus received its largest single order from the Indian passenger carrier. Since its last quarter recovery in fiscal year 2019, the airline was reportedly studying the inclusion of business class for its long-haul flights. With Air India hanging by a thread, and players like SpiceJet and Vistara seizing growth opportunities, IndiGo depends on innovation and development to retain its market leading position.
Tough year for Indian air-carriers
According to IndiGo’s CEO, 2019 was a year of two halves – the first involving declines resulting in losses due to high fuel prices and a weak rupee, in addition to fierce competition. Jet Airways’ declaration of bankruptcy earlier that year also had an impact on the industry as other companies tried to fill in its gaps. IndiGo hired 285 pilots from the Jet Airways staff and was looking to increase those numbers further.
Reaching greater heights
As part of expanding its wings, IndiGo launched international flights in 2011, five years after being in operation. This, along with fleet development, made the private-owned budget carrier one of the fastest-growing in 2013, after Indonesian Lion Air . A couple of years later, Airbus received its largest single order from the Indian passenger carrier. Since its last quarter recovery in fiscal year 2019, the airline was reportedly studying the inclusion of business class for its long-haul flights. With Air India hanging by a thread, and players like SpiceJet and Vistara seizing growth opportunities, IndiGo depends on innovation and development to retain its market leading position.
