IndiGo has further reduced its capacity guidance for FY20 due to Airbus A320neo engine troubles, it told investors Wednesday.
The Gurgaon-based carrier said its capacity would grow at 22-23 per cent year-on-year in FY20 from 25 per cent announced in October 2019. At the beginning of the financial year, the largest domestic carrier had planned to grow at 30 per cent y-o-y on the back of rapid aircraft addition from plane manufacturer Airbus SE.
In a presentation uploaded on the BSE, IndiGo said that directorate general of civil aviation’s (DGCA) order to ground each aircraft with unmodified engine for every addition of Neo plane with modified engines will have an impact on the capacity growth.
“The DGCA directive dated November 25 is likely to have an impact on future capacity. We expect a y-o-y capacity increase of 15-20 per cent in Q4FY20 and 22-23 per cent in FY20,” the communication said. IndiGo, which commanded 47.4 per cent domestic market share in October 2019, has been facing issues with its Pratt & Whitney-powered A320neo fleet, including mid-air engine shutdowns. —FE