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    Home»Travel Tips»FY25 sees Rs 7,258 cr profit & leap into long-haul ops, ET TravelWorld
    Travel Tips

    FY25 sees Rs 7,258 cr profit & leap into long-haul ops, ET TravelWorld

    Connections VoyagesBy Connections VoyagesMay 23, 2025No Comments5 Mins Read0 Views
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    In a landmark week for India’s largest airline by market share, IndiGo has made bold moves to cement its place as a global aviation player. The airline announced the launch of two new long-haul international routes — Mumbai to Amsterdam and Mumbai to Manchester — both set to commence in July 2025. These announcements come on the heels of IndiGo’s impressive Q4 FY25 financial results, positioning it at the forefront of India’s rapidly growing outbound aviation sector.

    Beginning July 1, 2025, IndiGo will offer thrice-weekly direct flights between Mumbai and Manchester, becoming the only airline currently providing nonstop service on this route and also the only low-cost carrier in the country offering long-haul flight services. A day later, on July 2, the airline will launch another long-haul flight connecting Mumbai to Amsterdam, also operating three times a week. Both routes will be served by Boeing 787-9 Dreamliner aircraft, leased from Norse Atlantic Airways, marking IndiGo’s official entry into long-haul wide-body operations.

    These developments are part of IndiGo’s broader strategy to bridge Indian cities with key global hubs, offering seamless connectivity to its robust domestic network of over 90 destinations.

    Sharing his thoughts on the announcements, Pieter Elbers, CEO, IndiGo, stated, “IndiGo’s long-haul foray marks a pivotal moment in our global expansion journey. The new routes to Manchester and Amsterdam will enhance connectivity, unlock new bilateral trade and tourism opportunities, and serve the growing Indian diaspora in these regions.”

    The airline said that both the long-haul routes will offer an upgraded travel experience with IndiGoStretch offering — which provides extra legroom, increased recline, priority check-in, and complimentary alcoholic beverages. Economy passengers will also enjoy complimentary hot meals and non-alcoholic beverages, with options to pre-book non-vegetarian meals on these long-haul flights. The economy cabin features a spacious 3x3x3 configuration, while IndiGoStretch offers a 2x3x2 layout with a generous 43-inch seat pitch.

    The move is also expected to support burgeoning tourism and student travel segments while showcasing Indian hospitality on global routes.

    Chris Woodroofe, Managing Director, Manchester Airport, welcomed the development, noting, “This route will link the North of England to the world’s fastest-growing economy. It’s a proud moment that underscores the strengthening ties between India and Manchester.”

    Q4 FY25 financial performance: Record revenue, profit and growth
    Coinciding with its international expansion announcements, IndiGo reported record-breaking financial results for Q4 FY25. The airline posted revenue from operations of ₹17,825 crore for the quarter, a 26.7% increase YoY, with a net profit of ₹1,894.8 crore. Passenger numbers hit an all-time high of 38.4 million for the quarter, reinforcing IndiGo’s dominance in the domestic and short-haul international market.

    Despite continued macroeconomic headwinds and fluctuating fuel costs, IndiGo delivered a solid financial performance for FY25, posting a net profit of ₹7,258.4 crore. However, this figure represents an 11.2% decline from the ₹8,172.5 crore profit recorded in FY24, highlighting the impact of higher operating costs and forex-related pressures.

    Revenue from operations saw a healthy 17.3% year-on-year increase to ₹80,802.9 crore, driven by an 11.1% growth in passenger numbers and improved load factors. While yield per kilometer rose marginally by 1.3% to ₹5.15, and CASK (cost per available seat kilometer) ex-fuel increased by a notable 12.5%, reflecting inflationary and infrastructure-related cost escalations. Notably, IndiGo’s EBITDAR grew 21.1% to ₹21,252 crore with a 26.3% margin, showing operational resilience.

    IndiGo expands global reach, announces inaugural long-haul flights to Amsterdam & Manchester

    To support its long-haul ambitions, IndiGo has entered into a damp lease agreement with Norse Atlantic Airways for Boeing 787-9 aircraft. Manchester will become the only direct link from India to the North of the UK, while Amsterdam will serve as a gateway to the Netherlands and beyond. These destinations will be the latest additions to IndiGo’s rapidly expanding international network, which already spans domestic India and Asia.

    The airline ended the year with ₹48,170.5 crore in total cash and received its first international investment-grade credit rating from Moody’s, further underscoring its financial stability. Still, the marginal decline in profitability, despite strong top-line growth, raises caution about future margin pressures as the carrier continues expanding international operations and managing capacity and fleet modernisation.

    Elbers attributed the performance to strong demand, network optimisation, and IndiGo’s focus on offering a hassle-free travel experience. “Our Q4 results reflect IndiGo’s growing strength not only as India’s leading carrier but as a serious global player. As we gear up to celebrate 20 years of IndiGo, these long-haul expansions mark the beginning of a transformative era for us.”

    In FY25 overall, IndiGo welcomed over 118 million passengers and maintained a fleet of 400+ aircraft. The airline inducted 58 new aircraft during the year and opened 10 new international routes, strengthening its foothold across Asia, the Middle East, and now Europe.

    Larger strategic intent
    IndiGo’s announcement underscores a larger strategic intent: to position itself as a competitive global carrier. The airline plans to expand its long-haul operations further with additional Dreamliners and the induction of Airbus A321XLRs starting this year and A350-900s from 2027. These aircraft will allow the airline to enter new long-haul markets while continuing to offer low fares.

    The airline’s international strategy also supports India’s broader ambition of becoming a global aviation hub, leveraging growing outbound travel demand, especially from business, student, and diaspora communities.

    India to the world, the world to India
    With strong bilateral trade, cultural ties, and increasing travel demand between India and Europe, IndiGo’s new routes are expected to significantly boost tourism and business travel. Amsterdam and Manchester, both rich in heritage and connectivity, are strategic additions that expand the airline’s reach into two vital global regions.

    Bookings are now open on the airline’s official website and mobile app, as well as through authorised travel partners.

    • Published On May 21, 2025 at 06:40 PM IST

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