IndiGo to invest $820 million in subsidiary to buy aircraft and strengthen fleet ownership

IndiGo Airlines is all set to invest $820 million in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Pvt. Ltd., to support the purchase of new aviation assets. This subsidiary, located in GIFT City, Gujarat, will use the funds mainly to acquire aircraft and related equipment for the airline.

According to IndiGo’s filing with the stock exchange, the investment will be made through a mix of equity shares and optionally convertible preference shares. The airline will put $770 million into equity shares and another $50 million into 0.01% preference shares, and these will be issued in one or more phases. IndiGo said that this move is part of its long-term plan to shift from relying mostly on aircraft leases to a more balanced model that includes direct ownership. The airline believes that owning more aircraft will give it better financial stability and more flexibility in managing its fleet.

IndiGo IFSC, which was set up on October 12, 2023, plays a key role in the company’s financial and leasing activities. In the financial year 2025–26, the subsidiary reported a turnover of INR 289.9 crore, a net profit of INR 11.1 crore, and a net worth of INR 413 crore. With the new investment, the company is expected to expand its role further in managing IndiGo’s aircraft and aviation assets.

The announcement comes shortly after IndiGo’s September quarter results, where the airline reported a net loss of INR 2,582 crore, compared to a loss of INR 987 crore in the same quarter last year. Even though foreign exchange expenses affected the financials, IndiGo’s revenue grew by 9.3% year-on-year to INR 18,555 crore, supported by better capacity planning and strong passenger demand.

IndiGo’s latest investment signals the airline’s intention to strengthen its fleet strategy, reduce dependence on leased aircraft, and create a more sustainable financial structure for the future. The move is also expected to support the acquisition of more aircraft as the airline continues to expand both domestically and internationally.