IndiGo’s Bonus Surge (Image Source: iStockphoto)
India’s largest airline, IndiGo, is expecting a strong financial turnaround, prompting a bonus for its employees. This positive outlook comes after years of struggle due to the COVID-19 pandemic.
Bonus for Strong Performance
IndiGo staff will receive a bonus equivalent to one and a half month’s salary in recognition of their contribution to the company’s anticipated return to profitability for the financial year 2023-24 (FY24).
Sukhjit Pasricha, IndiGo’s Chief Human Resource Officer, highlighted the airline’s challenging journey in a message to employees. He acknowledged the significant financial impact of the pandemic and praised the company’s solid performance since the second half of 2022.
Pasricha clarified that IndiGo traditionally offers annual bonuses based on company performance, and this payout reflects the positive operational and financial results achieved.
Swift Recovery from Pandemic
IndiGo’s domestic operations have witnessed a faster recovery than many other international airlines, fueled by a surge in domestic passenger traffic post-pandemic. This positive trend has been mirrored in the company’s share price, which has skyrocketed over 93 per cent in the past year. The 52 week high and low of Indigo shares is Rs 4,179.10 and Rs 2,130.30 respectively.
According to The Economic Times report, IndiGo’s market capitalisation also saw a significant boost, briefly making it the world’s third-largest airline in April 2024. Analysts predict a healthy profit of Rs 7,500-8,000 crore for FY24, a significant improvement from the Rs 306 crore loss reported in FY23.
Eyes on Long-Haul Market
With a dominant 60 per cent share of India’s domestic market, IndiGo is now setting its sights on long-haul routes. This expansion will pit them against competitors like Air India, Emirates, and Qatar Airways.
The airline recently placed a landmark order for 30 Airbus A350-900 wide-body aircraft, marking their first venture into this category. Additionally, purchase rights for another 70 planes, with deliveries starting in 2027, solidify IndiGo’s commitment to future growth.
