of india Top airline IndiGo said on Friday (October 25) that it expects to have around 40 per cent of its ground fleet in the air by April, after costs related to obsolete aircraft dragged the budget carrier into its first quarterly loss in two years.

“We expect grounded aircraft to fall from the high 60s currently to below 60 by the end of 2024, then drop to the 40s by April,” Gaurav Negi, IndiGo’s chief financial officer, said in an earnings call.

The low-cost carrier swung to a loss of 9.89 billion rupees (S$155.2 million) in the three months to Sept 30, compared with a profit of 1.88 billion rupees a year ago.

According to Negi and the airline’s CEO Pieter Elbers, the loss was due to fleet-related and fuel costs.

IndiGo has a market share of almost 63 percent in India and is also Asia’s largest carrier in terms of market valuation.

India, the world’s fastest-growing aviation market in the last two years, aims to become a global aviation hub as airlines including IndiGo place record jet orders.

IT in your inbox

Start and end each day with the latest news and analysis delivered straight to your inbox.

With 410 aircraft under its wings, the carrier expects capacity, measured in available seat kilometers, to increase by a low double-digit percentage in the third quarter from a year earlier.

IndiGo is also preparing to move away from pure economy cabin by introducing its first business class on selected domestic routes next month.

Problems with engines manufactured by Pratt & Whitney grounded more than 70 of its planes in November last year, with the airline extending leases of older jets and leasing more new jets.

Overhead expenses rose 22 per cent in the September quarter, outpacing the 13.6 per cent increase in revenues.

Fuel expenses increased by approximately 13 percent, while additional aircraft rental and maintenance costs increased by approximately 30 percent.

New aircraft and engine leasing costs have nearly quadrupled. REUTERS