Strategy

Why IndiGo’s international expansion flight path runs through Kenya, Kazakhstan

Raghav Mahobe

August 21, 2023 | 9 Min Read

In June, IndiGo announced that it would begin flights to Georgia, Uzbekistan, Kazakhstan, Kenya, Azerbaijan, and Indonesia. While these destinations may seem like odd choices for the low-cost airline, they are key to both maintaining its growth trajectory as well as its international market share.

Key Takeaways

IndiGo's latest international expansion has seen it add 174 weekly flights to Azerbaijan, Uzbekistan, Kazakhstan, Georgia, Kenya, and Indonesia
While it rules the domestic market, the airline is pushing to grow its 15% share of international traffic to and from India
IndiGo’s selection of new routes is the result of intense competition on popular routes to the Middle East and Southeast Asia as well as growing demand for services to less-explored regions
IndiGo hopes this will help put distance between itself, a revitalised Air India, and the young and hungry Akasa

On August 2, InterGlobe Aviation Limited—better known as IndiGo —posted its highest-ever quarterly profits. For the first quarter of the year ended March 2024, the low-cost airline raked in revenues of Rs 17,160 crore—a nearly 30% rise, year-on-year—to register a profit of Rs 3,089 crore.

This represents a massive recovery from the pandemic-affected year-ago period when the company clocked losses of Rs 1,056 crore. It also reinforces IndiGo’s status as India’s pre-eminent airline, with IndiGo accounting for 60% of India’s domestic air travel for three months running.

IndiGo, though, isn’t content to just remain the country’s domestic #1. It wants to replicate this success in international flights to and from India. In the year ended March 2023, IndiGo controlled just over 15% of this market. While this makes it the largest Indian aviator in this space, it is a long way from the dominance the airline has grown accustomed to domestically.

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