New Delhi: IndiGo is looking to increase the revenue it earns from passengers beyond regular ticket sales, with its ancillary revenue per passenger rising to ₹590 in the September quarter from ₹525 in the previous quarter. The airline sees further opportunities in paid add-on services, premium travel offerings and its loyalty programme as it seeks to generate more income from its existing passenger base.
IndiGo Chief Executive Officer Willie Walsh outlined the strategy during the airline’s second-quarter earnings call. He said the increase in ancillary revenue per passenger was encouraging, but added that there was considerable scope for further development.
The comments indicate a greater focus on revenue streams that complement the airline’s core low-cost business. Rather than depending only on ticket prices, IndiGo wants to make its additional services and premium products a more significant part of its overall business.
Ancillary revenue rises from ₹525 to ₹590
Ancillary revenue refers to income airlines generate from services and products apart from the basic airfare. These can include charges for preferred seats, additional baggage, meals, priority services and other optional facilities, depending on the airline’s offerings and applicable rules.
According to Walsh, IndiGo’s ancillary revenue per passenger increased from approximately ₹525 to ₹590 during the September quarter. This represents a rise of around 12.4% compared with the earlier figure.
Walsh said the airline was encouraged by the improvement and believed there was room to increase the amount further.
The opportunity is particularly notable when compared with European low-cost carrier Ryanair. Walsh said Ryanair generates approximately five to six times the ancillary revenue per passenger that IndiGo currently earns.
However, he pointed out that the difference cannot be viewed simply as a gap in commercial performance. Indian regulations and fare-related requirements mean that certain services must be included in the ticket price, whereas airlines in some European markets have greater scope to charge separately for them.
This regulatory distinction limits the extent to which Indian carriers can replicate the ancillary revenue model followed by some international low-cost airlines.
BlueChip loyalty programme seen as a growth opportunity
IndiGo is also looking to increase the contribution of its BlueChip loyalty programme. The programme is approaching 20 million members, giving the airline a sizeable customer base that it hopes to engage through structured rewards and partnerships.
Walsh said the airline was only beginning to realise the potential contribution of loyalty services. He acknowledged that building the programme into a meaningful revenue source would take time, but said the early developments under the new leadership team were encouraging.
BlueChip completed two years in October 2026 and has more than 30 partners, according to the company’s earnings-call remarks.
Loyalty programmes can help airlines encourage repeat bookings and strengthen relationships with frequent travellers. They can also create opportunities for partnerships with businesses across travel, hospitality, retail and financial services.
For IndiGo, the size of the BlueChip membership base provides a platform to expand engagement and explore additional commercial opportunities. However, Walsh did not announce a specific revenue target or timeline for the programme.
IndiGo Stretch premium offering gains attention
Premium services form the third part of the airline’s revenue-growth strategy. IndiGo is seeking to expand the contribution from IndiGo Stretch, its premium seating product.
Walsh said the product was receiving encouraging feedback from passengers and that more travellers were becoming aware of it. He also indicated that the airline could do more to promote the offering in premium travel markets.
The company has received positive responses from passengers who have experienced the product, while its performance on international routes has also been encouraging, he said.
The focus on premium services allows IndiGo to offer additional choices to customers willing to pay for a different travel experience, while continuing to operate its broader low-cost network.
The strategy is not limited to introducing premium products. It also involves improving awareness, making services easier to access and strengthening the airline’s ability to generate revenue from different passenger requirements.
Three areas form IndiGo’s revenue strategy
Walsh identified three areas where the airline sees potential for growth: premium services, ancillary revenue per passenger and, over the longer term, the loyalty programme.
The approach is intended to increase the revenue generated from each passenger without relying exclusively on higher base fares. It also gives the airline opportunities to develop services around different customer segments.
IndiGo has been strengthening the availability of add-on services through its digital channels and a broader range of customer choices. Its earnings-call commentary also highlighted pricing and easier access to these services as part of its efforts to improve ancillary revenue.
The airline’s plans come at a time when its operating costs remain under pressure. Higher aviation turbine fuel expenses and currency movements have weighed on its financial performance, even as revenue has increased.
The airline reported a net loss of ₹1,879 crore for the September quarter, while revenue rose 26% year-on-year. Fuel costs increased sharply during the period, underlining the importance of improving revenue and managing expenses.
Growth plans come amid pressure on airline costs
IndiGo’s efforts to increase ancillary and premium revenue are part of a wider attempt to strengthen its financial performance amid changing cost conditions in the aviation sector.
The airline has indicated that it wants to preserve its core low-cost operating model while developing additional sources of income. Its management has not provided a specific target for how much revenue the three growth areas are expected to contribute.
The comparison with Ryanair highlights the potential scale of the opportunity, but differences in market conditions and regulations mean that IndiGo’s growth path may not mirror that of its European counterpart.
For passengers, the strategy could mean greater visibility of optional services and premium travel choices. The financial impact will depend on how many customers choose these offerings, how effectively the airline develops its loyalty programme and the extent to which regulations permit additional services to be charged separately.
IndiGo’s immediate progress is reflected in the rise in ancillary revenue per passenger to ₹590. The next phase will depend on whether it can turn its premium products, paid services and growing BlueChip membership into sustained sources of revenue.