Speaking exclusively to ET, Elbers said the airline plans to increase its international destinations from 20 to 40 by the end of the current financial year till March 2025, targeting emerging markets that are not yet heavily trafficked by Indian passengers.
He did not comment on specific destinations, but sources suggest the new routes could include Mauritius and Al Ain.
In parallel, IndiGo plans to significantly increase its cargo capacities and introduce wide-body aircraft from 2027.
Elbers, who has completed two years at IndiGo, said that apart from internationalisation, the budget carrier’s strategy is centred on two main pillars: the launch of a new business class product called ‘Stretch’ on key domestic routes by the end of the current financial year; and the introduction of a frequent flyer programme to reward loyal customers, which has received interest from “tens of thousands of passengers”.
The airline’s internationalisation efforts go beyond just adding new destinations. IndiGo has signed codeshare agreements with global airlines such as Virgin Atlantic, Air France, KLM and Qantas. “While these partnerships currently represent a small part of our 300,000 daily passengers across our domestic and international network, they are vital in introducing overseas travellers to IndiGo. These collaborations will be even more crucial as we expand internationally,” Elbers said. “(Currently) only low single digits come from our codeshares, the rest comes from our own network,” he added. A recent MakeMyTrip report said there has been a 70% increase in combined search volume for the top 10 emerging destinations. Almaty and Baku have seen 527% and 395% growth in searches respectively, it said. These are destinations that IndiGo has pioneered in India.
Adding to this, Elbers said, “It’s a huge boost that if we open up new routes, there’s a huge set of Indian consumers who are really willing to start expanding, exploring new parts of the world beyond the kind of places they’ve probably already been to.”
According to a Jefferies report, Indian airlines currently control 44% of international routes, while IndiGo owns 18%.
Elbers said IndiGo’s domestic expansion has already contributed to economic development in places like Guwahati, where new flights have spurred increased business activity. This positive cycle of growth — more flights lead to more business, and vice versa — is a model that IndiGo plans to replicate in other markets, particularly internationally, he said.
While 2027 marks the introduction of wide-body aircraft and a new era for IndiGo, the airline’s ambitions extend to 2030. “Everything we are doing today is part of a much bigger picture. Our ambition is to be a global aviation player by 2030,” Elbers said.
By then, IndiGo aims to have doubled in size, rivaling Ryanair and major Chinese airlines in the global aviation industry, Elbers said, responding to a question about when it can be among the top six.
According to its annual report, at the end of fiscal year 2024, IndiGo was the world’s seventh-largest airline in terms of daily flights (Ryanair in fifth place and China Eastern Airlines in sixth) and the fifth-largest airline in terms of passengers carried. It was also the fifth-best airline in terms of punctuality in calendar year 2023.
By then, IndiGo aims to have doubled in size, rivalling the likes of Ryanair and major Chinese airlines in the global aviation industry.
After 2027, “cargo transport will start to play a bigger role than it does today,” Elbers said. The airline currently operates three freighter aircraft “which are helping us build the infrastructure and expertise needed for the future,” he said.
“Widebody aircraft inherently offer more cargo capacity, so these freighters are setting us up for a significant increase in cargo volume as we move into this next phase,” he added.
IndiGo’s cargo tonnage grew 20.2% in FY24.
The airline’s long-range A321 XLR orders will begin arriving in 2025, while the wide-body A350s will commence from 2027. Both will contribute to its strategy of increasing its global presence and will enable IndiGo to fly directly to destinations in North America, Europe and Australia.
Asked whether the airline would order more freighters, Elbers said the airline is keeping “options open to add more to its fleet.”
IndiGo’s operating revenue and total cash have grown 2.5 times to pre-Covid levels. The company has been profitable for seven consecutive quarters and maintains a strong cash position. Given this financial stability, last August, the company announced its intention to launch a venture capital firm to invest in the aviation and related sectors.
Asked if the company had any acquisition prospects shortlisted, Elbers said he has been working on the infrastructure needed for the LLP.
On the outlook for this fiscal year, Elbers said the company remained “firm” on its initial double-digit capacity guidance. IndiGo’s international operations currently account for about 27% of its available seat kilometres (ASKs), and are expected to grow further as the airline expands its international network.
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