No-frills airline IndiGo on Thursday announced a foray into business travel with an upcoming ‘tailor-made’ product for the busiest routes on a day it announced a ‘record’ profit of ₹8,172 crore for the financial year 2024.
The airline had clocked a loss of ₹305 crore in the previous fiscal.
IndiGo also reported a net profit of ₹1,894 crore for the fourth quarter of last fiscal against ₹919 crore in the year-earlier period. This is the sixth straight profitable quarter for IndiGo since COVID-19 and the first year where all four quarters have been profitable.
In a press statement, IndiGo said the new business product will be operational before the end of 2024 and it will announce further details, including the routes and the launch date in August.
Speaking during the post-result analyst’s call, CEO Pieter Elbers said the business product was aimed at addressing the “ever-growing need for premium travel”.
IndiGo offers only economy-class seats on its Airbus A320 fleet of planes. The two Boeing 777 aircraft leased from Turkish Airlines and used for flights to Istanbul have 28 business class seats apart from 372 economy seats.
Among its domestic competitors, Air India offers a three-class configuration — first, business, and economy— on its planes. Its Boeing 777 planes leased from Delta have premium economy seating instead of first class and so do the new Airbus A350 aircraft.
Vistara, which will be merged with Air India, offers business, premium economy and economy classes. The move announced by IndiGo aims to fill the gap left by Jet Airways as well as compete with Air India.