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IndiGo targets 50% daily flight capacity by July; profitability 14 months away

IndiGo is targeting to achieve 70% capacity by March 2021 and 85% by April 2021. It is currently operating around 350 flights daily

twitter-logoBusinessToday.In | June 15, 2020 | Updated 17:53 IST
IndiGo targets 50% daily flight capacity by July; profitability 14 months away
IndiGo had previously announced several cost-saving measures comprising salary cuts, leave without pay, and deferment of supplementary rentals

Low-cost carrier IndiGo aims to run 50% of its total daily capacity of 1,500 plus flights in July as well as restart international operations probably in the Middle East countries, the airline's CEO Ronojoy Dutta said on Monday.

The budget carrier is targeting to achieve 70% capacity by March 2021 and 85% by April 2021, Dutta told The Economic Times in an interview, adding that the airline's profitability is at least 14 months away.

The government had allowed airlines to resume domestic flight operations from May 25 in calibrated manner.

Also Read: Coronavirus impact: How IndiGo is turning Covid crisis into an opportunity

Air travel has been suspended in India since March 25 following the announcement of a nationwide lockdown to prevent the spread of coronavirus. Over 650 aircraft were grounded.

Although airlines are permitted to function up to 30% of their capacity, several conditions imposed by state governments are keeping the numbers low. IndiGo currently operates around 350 flights daily.

Dutta seeks lifting of travel lockdown as it has caused massive job losses, thereby livelihoods. He added that although there have been "encouraging trends in occupancy", they are still far from pre-COVID-19 levels.

As per the numbers tweeted by Civil Aviation Minister Hardeep Singh Puri, domestic airlines are on average filling a little over 50% of their flights.

Also Read: Coronavirus: Indigo implements pay-cuts again after rolling back decision

"The trend has been encouraging," Dutta highlighted, adding that unlike previously, IndiGo is doing a month on month planning for the future now.

He exclaimed that the carrier is capable of covering its variable costs and is contributing to its fixed costs as well.

The airline had previously announced several cost-saving measures comprising salary cuts, leave without pay, and deferment of supplementary rentals.

Also Read: Domestic flights to resume from May 25: IndiGo, SpiceJet gear up for post-lockdown operations

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