IndiGo, India’s largest airline, is grappling with uncertainty over its codeshare and damp lease agreement with Turkish Airlines as diplomatic tensions between India and Turkey escalate. The partnership, which powers IndiGo’s high-capacity flights from Delhi and Mumbai to Istanbul using Turkish Airlines’ Boeing 777 aircraft, is due to expire on May 31, 2025, with renewal subject to Indian government approval.
CEO Pieter Elbers addressed the issue during a press conference and investor call following the announcement of InterGlobe Aviation’s financial results for the January-March 2025 quarter. He stressed that IndiGo’s operations, including the codeshare and damp lease, fully comply with Indian regulations and the IndiaTurkey bilateral air services agreement. This agreement permits 56 weekly flights between the two countries without seat caps, enabling IndiGo to utilize Turkish Airlines’ wide-body jets, each carrying over 500 passengers, to meet robust demand on the Istanbul route—a critical hub for connections to over 40 destinations in Europe and North America.
The partnership has come under scrutiny due to Turkey’s support for Pakistan in the recent India-Pakistan conflict, compounded by the use of Turkish drones in operations against India. Public sentiment in India has turned critical, with growing calls for a boycott of Turkish businesses, including IndiGo’s collaboration with Turkish Airlines. The government’s recent decision to revoke security clearance for Turkey-based ground handling firm Celebi at Indian airports has intensified speculation that the damp lease renewal may face rejection.
Elbers emphasized IndiGo’s adherence to regulatory frameworks, noting strong customer demand for the Istanbul flights. “The operations are fully compliant with all rules and regulations from the Indian government,” he said, adding that the decision on lease renewal lies with the authorities. He reassured stakeholders that IndiGo has contingency plans, such as deploying its narrow-body Airbus A320neo and A321neo aircraft, which have previously operated the Istanbul routes during lease renewals or technical issues. “As a good airline, we ensure fallback plans in case of changes,” Elbers said, highlighting the carrier’s operational flexibility.
Despite the uncertainty, IndiGo’s financial performance remains a bright spot. InterGlobe Aviation Ltd reported a profit of Rs 3,067.5 crore for the JanuaryMarch 2025 quarter, more than doubling the Rs 1,894.8 crore from the same period last year and surpassing analyst expectations of Rs 2,330–2,432 crore.
Revenue from operations rose 24% to Rs 22,151.9 crore, driven by strong domestic demand, though slightly below estimates of Rs 22,500 crore. For the full financial year 2025, revenue grew 17% to Rs 80,803 crore, but net profit fell 11% to Rs 7,258 crore due to a 17% increase in expenses to Rs 76,505 crore.
As IndiGo awaits the government’s decision on its Turkish Airlines partnership, the airline’s robust financials and proactive planning underscore its ability to navigate challenges while maintaining its dominance in India’s aviation market. With a focus on compliance and adaptability, IndiGo is poised to ensure seamless service for its customers, regardless of the outcome.
