Indigo Airlines to receive A350 aircraft in second quarter of 2028, says CEO Willie Walsh

According to reports by The Hindu, Business Standard and The Economic Times, Indigo Airlines Chief Executive Officer (CEO) Willie Walsh said on Monday that the airline will seize the numerous opportunities available in the industry and move forward strongly amidst all challenges. This was Willie Walsh's first in-person press briefing since taking over as CEO in August. He made it clear that the airline's main focus remains on an excellent cost base. The airline expects to receive delivery of its wide-body Airbus A350 aircraft starting from the second quarter of the year 2028.

Willie Walsh stated that Indigo has all the necessary elements to succeed in the long-haul market. Currently, the profitability of airline companies is being adversely affected due to rising fuel prices and the depreciation of the rupee, making the situation extremely challenging for the entire industry. In the September quarter, Indigo suffered a loss of ₹1,879.1 crore. The profitability of the company was threatened due to high fuel prices and currency depreciation, and amidst these difficulties, the airline also reduced its capacity.

Despite these challenges, he added that the company is seeing infinite opportunities. Speaking about the Navi Mumbai Airport near Mumbai, he said that this airport has brought a very big opportunity for Indigo and the decision to partially shift international flights there was taken in the interest of the airline. Speaking of the current situation, Indigo operates more than 2,100 flights daily and more than 400 aircraft are included in the company's operational fleet.

According to a report by Business Standard, Willie Walsh clarified on Monday that Indigo is not considering fuel hedging (risk mitigation against fuel prices) at the present stage. The airline may consider this option when it begins expanding its long-haul operations. Currently, no airline operating in the Indian domestic market uses fuel hedging. If Indigo hedges against its competitors, it creates additional risk, which is against the basic principle of hedging.

Fuel cost accounts for approximately 40 percent of any airline's operational cost. Due to the West Asian crisis and geopolitical uncertainties, fuel prices have remained at high levels for the last few months. Globally speaking, European carriers hedge 70 to 80 percent of their fuel prices. Walsh stated that long-haul expansion will give the company an opportunity to review its hedging policies, and this issue was also discussed in the recent board meeting. A decision on this will be taken further after a more detailed review.

Furthermore, Indigo reiterated that the delivery of the A350 aircraft will be received in the second quarter of 2028. This aircraft will come with a three-class configuration, which will include 16 flat beds in the business class along with premium economy and economy class seats. According to a report by The Economic Times, amidst the obstacles of rising fuel costs and a declining rupee, the airline is focusing on increasing long-haul routes and has cut routes to Saudi Arabia to manage its operations better.