IndiGo CEO Willie Walsh
IndiGo will not compromise its short-haul business to feed long-haul routes, CEO Willie Walsh said, pledging to protect the low-cost operation as the airline expands internationally.
Speaking on his first earnings call as IndiGo CEO on Oct. 29, Walsh said the carrier’s extensive domestic network meant it could support long-haul growth without changing its short-haul model.
“I think where airlines have maybe got it wrong before is that they’ve accepted a compromise on their short-haul operation, given the expected contribution that short-haul feed makes to long-haul,” he said. “We’re not going to make that mistake.”
IndiGo is ending its Norse Atlantic Airways widebody damp lease from Nov. 1 but remains committed to introducing Airbus A350s in 2028. Alongside its A321XLRs, the aircraft will allow it to reach more international markets.
Walsh said IndiGo’s low-cost base gave it an advantage as it expanded into long-haul flying, but the introduction of widebodies would not be allowed to distract the rest of the airline.
“We will remain absolutely laser-focused on our short-haul, low-cost operation, and will not be distracted by anything that we need to do on the long-haul introduction,” he said.
IndiGo reduced September-quarter ASKs by 1% in response to high fuel costs and seasonally softer demand. It reported a net loss of INR18.79 billion ($198 million), despite a 25.9% increase in revenue from operations to INR233.64 billion.
Walsh said the domestic network did not need a major restructuring. The airline would instead continue adding or removing capacity as demand changed.
He also sees room to increase revenue from Stretch, IndiGo’s premium seating product, citing encouraging results on international routes. Its contribution to the quarter’s yield increase was not meaningful, but Walsh said the airline could do more to sell the product.
“I think we’ve probably been a bit shy about promoting the product in the premium market,” he said.
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