IndiGo to add new Airbus jets to its fleet despite COVID-19 uncertainty

IndiGo has said that it will keep adding new aircraft to its fleet even though it can’t give any firm guidance on future capacity growth because of the COVID-19 pandemic. The airline, the world’s biggest customer for Airbus SE’s best-selling A320neo jets, plans to return its entire fleet of 120 older, fuel-guzzling planes to lessors in the next two years, CEO Ronojoy Dutta said in a conference call with analysts and investors after the carrier reported fourth-quarter earnings Tuesday.

“Almost all or close to all” of those aircraft will be replaced by new jets, Dutta said, without giving a time frame for that to happen. “We are in active discussions with Airbus — we will take a large number. It will all depend on the revenue picture and the pricing we get and so forth, but we will take a large number,” he added.

IndiGo, which had earlier expected capacity to increase 20 per cent in the year ending March 2021, refrained from giving any guidance as it declared quarterly financial results. It posted a loss of Rs 8.7 billion for the fourth quarter ended March 31, compared with a profit of 5.9 billion rupees in the same period a year earlier.