PTI
New Delhi
No-frills airline IndiGo will induct 10 fuel-efficient A-320 Neos this fiscal ending March 2016, to its aircraft fleet and expects the company's low-cost structure to deliver improved profitability in the coming years.
In the next fiscal (2016-17), IndiGo would induct 23 more Neos and an additional 20 Neos in 2017-18 financial year. It aims to become an all-Neo fleet airline by FY-2022, IndiGo President, Aditya Ghosh said in an interview.
Preparing to hit the capital market with nearly Rs 3,000 crore IPO next week, IndiGo's parent InterGlobe Aviation is bullish on the airline's growth prospects in the highly under penetrated domestic aviation market.
Ghosh further said that the carrier expects to see its profit improving on the low cost structure and economies of scale.
"Absolutely, we see it improving because of only reason that is cost structure," Ghosh said in reply to a query on whether he expects profits to rise in the future.
As per the latest set of financial results disclosed by the company, it posted a net profit of Rs 640.44 crore in the quarter ended June 30, 2015. During the same period, total revenues stood at Rs 4,317.19 crore.
For the year ended March 2015, it recorded a net profit of Rs 1,295.58 crore on revenues of Rs 14,309.14 crore.
Currently, IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease -- a business model which has helped it lower costs.
To a question on overseas expansion, on which the budget carrier has so far been quite conservative, Ghosh said the primary focus remains enhancing the domestic connectivity.
If international services were to be expanded, it would be first in the markets where it is already present, he added.
Since the launch of its first international flights (Delhi-Dubai) in September 2011, the budget carrier has added only four more overseas airports in its route network.
Ghosh, however, said the airline may add some flights on the international routes alongside expansion across the domestic network.
