IndiGo Soars Higher: Market Share Peaks at 63.3% Amid New Codeshare Deal with Japan Airlines

Shares of InterGlobe Aviation, the parent company of IndiGo, rose to ₹4,295 on November 26, marking a gain of over 1%.

This boost comes as the airline achieved its highest market share of 63.3% in October and announced an upcoming codeshare partnership with Japan Airlines (JAL), set to begin on December 16, 2024.

The collaboration underscores the growing connectivity between India and Japan while broadening the network reach for both airlines.

Codeshare Partnership Details

The partnership allows JAL to expand its footprint to 18 domestic destinations within IndiGo’s network. Through this agreement, passengers can book flights on a single ticket that covers both airlines, ensuring seamless travel across their combined networks.

Currently, JAL operates daily flights between Tokyo’s Haneda Airport and Delhi, as well as five weekly flights between Narita Airport and Bengaluru. These international routes will now link to IndiGo’s domestic network, enhancing connectivity.

IndiGo’s Expanding Codeshare Agreements

IndiGo has already established similar codeshare partnerships with carriers like British Airways, Turkish Airlines, Qatar Airways, and Air France-KLM. In October, IndiGo carried 86.4 lakh passengers, cementing its position as India’s leading airline.

This achievement aligns with India’s overall domestic air traffic growth of 5.3% year-on-year, with 1.36 crore passengers in October 2024 compared to 1.26 crore a year earlier. Other airlines like SpiceJet and Akasa Air hold significantly smaller market shares of 2.4% and 4.5%, respectively.

Financial Performance and Market Dynamics

Despite its operational dominance, IndiGo reported a net loss of ₹986 crore in the September quarter, attributed to rising fuel costs and record aircraft groundings.

However, revenue from operations grew by 13.6% year-on-year, reaching ₹16,969 crore in Q2FY25. The airline’s stock has shown strong performance, surging over 40% this year, significantly outpacing the Nifty 50’s 10% rise.

However, a decline of nearly 10% over the past three months reflects short-term market challenges.

Strengthening Bilateral Ties

The partnership with JAL aligns with the broader strategic cooperation between India and Japan. Senior executives from both airlines emphasize the importance of this collaboration in enhancing travel options for business and leisure travelers.

Abhijit DasGupta, Senior Vice President of Network Planning and Revenue Management at IndiGo, stated that the codeshare agreement would bolster trade, tourism, and cultural exchanges between the two nations.

Ross Leggett, Managing Executive Officer and Senior Vice President of Route Marketing at JAL, echoed similar sentiments, highlighting how the partnership caters to the growing demand for air travel between India and Japan.

The agreement enables travelers to explore culturally rich destinations in both countries while benefiting from the high standards of service provided by the two airlines.

Enhanced Connectivity Across Networks

Initially, the codeshare agreement will connect JAL-operated flights to/from Delhi and Bengaluru with 18 domestic destinations in IndiGo’s network.

Delhi serves as a primary hub, linking to major cities like Mumbai, Chennai, and Kolkata, while Bengaluru functions as a secondary hub connecting additional domestic destinations. JAL’s Southeast Asian network, including routes to Bangkok and Singapore, will complement this domestic connectivity.

Promoting Seamless Travel

Through this partnership, passengers can book flights on a single ticket, combining IndiGo’s operational efficiency with JAL’s international expertise.

The collaboration aims to simplify travel while maintaining punctuality, affordability, and customer satisfaction. This move also highlights IndiGo’s commitment to offering a hassle-free travel experience across an unparalleled network.

Future Prospects

Both airlines envision expanding the partnership to include more routes and services in the future, further strengthening ties between India and Japan.

JAL will begin ticket sales for codeshare flights with IndiGo on December 4, 2024, pending government approvals. Operations under this partnership are slated to commence on December 16, 2024.