IndiGo Airlines, India’s largest low-cost carrier, has reported a decrease in its AOG (Aircraft on Ground) numbers, signaling an improvement in operational efficiency. However, despite this positive development, the airline continues to rely on wet- and damp-leased aircraft to meet the strong and sustained demand for air travel across various markets.
Pieter Elbers, the CEO of IndiGo, discussed this in detail during a January 24, 2025, earnings call. He emphasized that while the airline had witnessed a reduction in grounded aircraft, the need for additional capacity, especially in underserved markets, has prompted IndiGo to continue utilizing wet- and damp-leased aircraft. According to Elbers, this approach is crucial for maintaining flexibility and ensuring that the airline can respond swiftly to fluctuating market demands.
As of now, IndiGo operates a fleet of 408 owned and dry-leased aircraft, but it also leases 16 A320-200s, 10 B737-8s, two B737-800s, and two B777-300ERs on a wet/damp lease basis. In the fourth quarter of 2024, the airline expanded its fleet by adding eight damp-leased aircraft. Despite the reduction in AOG numbers, Elbers stated that the airline would continue to explore the possibility of adding more long-range wet/damp-leased jets to its fleet, particularly to strengthen its presence in long-haul markets.
Elbers highlighted that while there are still certain markets where demand remains unmet, wet- and damp-leased aircraft provide IndiGo with the capability to tap into these opportunities. The airline has effectively leveraged capacity from the secondary market to address immediate demand, and Elbers expressed optimism that IndiGo would soon be able to cater to the growing demand for long-haul flights. He underscored that there is significant untapped potential in these markets, and IndiGo plans to tap into this reservoir to fuel future growth.
This strategic decision to continue wet- and damp-leasing aircraft is part of IndiGo’s broader plan to stay agile in a competitive and fast-evolving aviation landscape. The carrier’s ability to quickly scale capacity through these leases allows it to meet demand while maintaining the flexibility to adjust its fleet as required.
As IndiGo looks to maintain its position as a leading airline in India and expand its international footprint, its continued use of wet- and damp-leased aircraft, alongside its growing fleet of owned and dry-leased planes, remains a key component of its strategy to serve both domestic and international markets efficiently.
