IndiGo Airlines to Introduce Business Class on Select Flights in Strategic Shift

IndiGo Airlines, India’s largest carrier, is set to introduce a business-class section on selected aircraft and routes by the end of this year, marking a significant departure from its low-cost carrier model. During a May 23 earnings call, CEO Pieter Elbers highlighted the move as a response to increasing demand for premium travel and the growing needs of the corporate market.

Elbers stated, “We will be launching a tailor-made business product on the busiest routes of the country before the end of this year.” Further details on the configurations and specific offerings of the new business class will be disclosed in August, according to an official statement from IndiGo.

Sources indicate that the new business class cabin will initially be available on 10 to 15 aircraft, targeting tier-one metro markets such as Mumbai, Delhi, Chennai, and Bengaluru. Additionally, the premium offering will extend to selected international flights to major cities including Abu Dhabi, Dubai, and Singapore.

This strategic enhancement aligns with IndiGo’s recent performance achievements, as the airline reported a record annual net profit of INR 81.73 billion (approximately USD 982.8 million) for the fiscal year ending March 31, 2024. Elbers credited the success to “the strong execution of our strategy,” which has consistently met the company’s yearly targets.

IndiGo’s fleet primarily consists of Airbus narrowbodies, excluding two damp-leased Boeing 777-300ERs for flights to Istanbul and forty-five ATR72-600s for domestic regional operations. The fleet currently includes thirty-six A320-200s (sixteen leased), 194 A320-200Ns, ninety-five A321-200NXs, and three A321-200(P2F)s. The airline also has an ambitious order book of 985 aircraft to support its expansion, including three A320-200s, 265 A320-200Ns, 390 A321-200Ns, 223 A321-200NXs, sixty-nine A321-200NX(LR)s, thirty A350-900s, and five more ATR72-600s.

With these fleet expansions and the new business class offering, IndiGo is not just expanding its service range but also aligning with India’s broader ambitions to become a global aviation hub. This development signals IndiGo’s transition towards becoming a significant player on the international aviation stage, aiming to attract a more diverse clientele while enhancing its service offerings.