Wet- and damp-leased aircraft will continue to play as role at IndiGo Airlines (6E, Delhi International), according to CEO Pieter Elbers. He told a January 24, 2025, earnings call that strong demand for air travel and the number of markets needing extra capacity warranted the low-cost carrier continuing to use ACMI for the immediate future. He also said the number of aircraft on the ground had peaked and is now on a downward trajectory.
In addition to its 408 owned and dry-leased aircraft, according to ch-aviation fleets data IndiGo Airlines wet/damp leases sixteen A320-200s, ten B737-8s, two B737-800s, and two B777-300ERs. In the last quarter of 2024, the carrier added eight damp-leased aircraft to the fleet. Elbers said that IndiGo Airlines is actively exploring opportunities to add more long-range wet/damp leased jets to the fleet.
"There are still certain key markets which are underserved, and this represents a vast reservoir of untapped potential," he said. "We have developed a capability of leveraging secondary market capacity to cater to the robust demand in the market and we are hopeful that soon we will be able to cater to the demand in the long-haul markets too."
Aircraft groundings at Indigo Airlines, predominantly due to the Pratt & Whitney powder metal issue, peaked in 2024 and numbered in their 70s. The number of grounded aircraft is now in the 60s and decreasing.
"Based on the latest guidance from OEMs, we will begin the next financial year [April 1, 2025] with the groundings in the range of 40s and expect the number to further go down as the year progresses," CFO Gaurav Negi said in the earnings call.
However, Elbers says an increase in the number of grounded aircraft returning to service will not necessarily correspond to a decrease in the number of wet- and damp-leased aircraft.
Indigo Airlines will "adjust the situation with the leases as per our desire to match the market demand and accommodate the growth which is there," he said. "We'll keep some flexibility of these leases going forward."
Elbers says the wet/damp leased aircraft are going a long way to addressing the capacity shortfall and aircraft delivery delays. "For the time being, the key driver is to deal with the supply chain challenges," he said. Wet/damp leases have "served IndiGo extremely well in terms of serving the demand, keeping our market position, building our network, creating a customer basis. So, we will continue to do that going forward, and at one point in time there is going to be sort of focus on seasonal fluctuations over the AOG situation."
