IndiGo shares edge lower after Q4 results, business class launch plans

Shares of Interglobe Aviation, the parent entity of budget carrier IndiGo, edged lower in the early trading hours on Friday. The decline came a day after the company posted its results for the March 2024 quarter, and drew attention with its plan to launch “business class” services on select flights.

In the first hour of trading, IndiGo stock touched a low of ₹4,320.05, down 1.8% as against the preceding day’s close. By 10:30 am, the shares were trading at ₹4,330.7 apiece, down 1.59%.

Post the market hours on Thursday, IndiGo posted a net profit of ₹1894.8 crore for Q4FY24, which was double as compared to ₹919 crore in the year-ago period.

The company’s revenue from operations during the fourth quarter increased 26% year-on-year (YoY) to ₹17,825.3 crore, as compared to ₹14,161 crore in the same period last year.

While the surge in net profit was in line with the consensus estimate, the revenue growth had surpassed the expectation of a 16% jump.

Business class plans

IndiGo, which has focussed on affordability over the last 18 years, is now looking to target the premium market with the launch of business class services on some of its “busiest flights”. The services will be rolled out by the end of this year, the airline said in a statement.

IndiGo currently offers only economy class services on its domestic and international flights. The launch of business class will “create a desired option for many who are aiming to travel business, perhaps for the first time in their lives”, the statement said.

"This product will be available on the busiest, and business routes of the nation and will be operational before the end of this year. Coming August, around IndiGo’s anniversary, more details on product offering, launch date and routes will be unveiled," it added.