India’s largest airline IndiGo plans to increase the proportion of owned and finance-leased aircraft in its fleet while expanding its network and maintenance capabilities, as it charts the next phase of growth towards a 600-aircraft fleet by 2030.
In his message to shareholders in the company’s Annual Report 2025-26, Managing Director Rahul Bhatia said IndiGo has realigned its fleet strategy to increase the share of owned or finance-leased aircraft from around 20% of its current fleet of 400 aircraft to 30-40% of its projected fleet over the next five years.
The move comes even as the airline navigates global currency volatility, supply chain disruptions and rising operating costs.
Strong balance sheet supports growth
Bhatia said IndiGo remains well positioned to capitalise on growth opportunities, backed by a strong balance sheet and liquidity exceeding ₹516 billion.
The financial strength will support the airline’s plans to expand its fleet, strengthen its network and create long-term value for shareholders.
During FY2025-26, IndiGo operated more than 2,150 daily flights across over 140 destinations, reinforcing its leadership in both domestic and international markets.
The airline also crossed a major milestone by generating annual revenue of around $10 billion, while carrying more than 123 million passengers, representing a 4% year-on-year increase.
Industry challenges persist
Despite the growth momentum, Bhatia cautioned that airlines continue to face significant headwinds.
Fuel remains one of the largest cost components, while volatility in global energy markets continues to create uncertainty. Indian carriers have also been impacted by prolonged airspace closures over the past year.
The industry is also grappling with global supply chain constraints affecting aircraft deliveries, engine availability, maintenance cycles and component sourcing, alongside foreign exchange volatility that increases capital costs.
Bengaluru MRO facility by 2028
A key element of IndiGo’s long-term strategy is strengthening India’s aviation infrastructure.
The airline is developing a world-class maintenance, repair and overhaul (MRO) facility at Kempegowda International Airport, Bengaluru, which is expected to become operational in 2028.
The new facility, together with existing MRO centres in Delhi and Bengaluru, will enhance maintenance capabilities, improve operational resilience and support India’s ambition to emerge as a global aviation hub.
The investment is also expected to generate significant employment opportunities in aircraft maintenance engineering, technical services and logistics.
Technology-led transformation
Technology remains central to IndiGo’s growth strategy. During the year, the airline expanded its digital travel ecosystem by integrating hotel bookings, cab services and travel experiences while enhancing the customer journey through Digi Yatra integration.
Its loyalty programme, IndiGo BluChip, crossed 11 million members, while the airline continued to advance its AI-first strategy through automation initiatives under 6Eskai.
IndiGo also strengthened operational resilience by migrating its AMOS maintenance platform to a cloud-based environment and implementing digital initiatives across key operational functions.
Bhatia said the airline’s priorities remain focused on operational excellence, superior customer experience, financial resilience, sustainability and long-term value creation as it scales into a leading global aviation player.