IndiGo expects slower capacity growth in the upcoming fiscal year as it nears the widebody jet decision.

IndiGo, the budget carrier, is considering the acquisition of widebody aircraft to expand its international reach and compete with Air India. Although the airline is still weighing its options, sources indicate that it is likely to acquire approximately 30 Airbus SE A350s. A public announcement regarding this decision may be made in the coming days. The sources requested anonymity as the information is not yet available to the public.

IndiGo, the airline, is still considering its options for acquiring new planes. According to anonymous sources who are not authorized to share the information publicly, the most likely option is for IndiGo to acquire around 30 Airbus SE A350s. However, the sources have cautioned that IndiGo may still change its mind regarding the number of planes and acquisition timeline and that a final decision could be announced in the next few weeks.

IndiGo, the low-cost Indian airline, has been considering the idea of launching long-haul flights to cater to the growing number of wealthy Indian travelers who are increasingly traveling to far-off destinations such as the UK and Europe. The airline currently operates a fleet of mostly single-aisle Airbus models, but it has recently added two Boeing Co. 777s to its fleet, which were leased from Turkish Airlines for flights to Istanbul.

IndiGo became one of Airbus’s top clients after placing a record-breaking order for 500 A320neo family aircraft last year. Presently, the airline has approximately 1,000 planes on backorder.

IndiGo, a low-cost airline, has come a long way since its establishment in 2005. It operates over 2,000 flights daily and serves 118 destinations. In 2023, it was recognized as one of the few airlines that carry over 100 million passengers annually, and aims to double that number by the end of the decade. However, expanding into long-haul operations can be risky for budget airlines. Other carriers, including WOW Air, AirAsia X, and Norwegian Air Shuttle ASA, have experienced difficulties in justifying their business model. According to a report from Bloomberg, InterGlobe Aviation anticipates weaker capacity growth in the fiscal year beginning on April 1st.

During an analyst presentation held on Friday, a low-cost airline revealed that it expects its capacity to expand in the “early double digits” next year, with a comparable pace of increase in the number of passengers it carries. However, it also stated that the rate of growth anticipated for the upcoming fiscal year is lower than previously predicted for the current fiscal year, as well as lower than the growth observed in the December quarter.

In the last quarter, IndiGo increased its capacity by approximately 27%, while the number of passengers it transported increased by over 23%. The airline also reported that it exceeded its targets for a capacity increase in the “north of mid-teens” as well as over 100 million passengers flown for the fiscal year that ended on March 31.

The airline plans to increase its fleet by over one aircraft per week in 2019. Currently, it has 366 planes in operation and another 960 on order.

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