IndiGo Cargo outpaced the market with 11% growth in 2025, driven by belly capacity and freighters, even as costs rise.
IndiGo’s cargo division delivered a strong performance in calendar year 2025, recording an 11% year-on-year increase in volumes to 438,147 tonnes, significantly outpacing the global air cargo market’s growth.
The surge was powered by higher belly cargo capacity on passenger flights and the deployment of three dedicated freighters, reinforcing the airline’s strategy to deepen cargo integration across its expanding network. According to the airline, the growth rate exceeded overall market expansion, underscoring cargo’s rising importance in IndiGo’s business mix.
Official data for the first nine months of FY26 showed a 7.1% rise in domestic freight and a 5.3% increase in international freight, translating into 6% overall cargo growth during the period. Domestic cargo continues to dominate, accounting for around 80% of IndiGo’s cargo volumes, while international operations and freighters contribute 10% each.
Globally, air cargo demand grew by 3.4% in 2025, with international segments expanding by 4.2%, highlighting IndiGo Cargo’s outperformance amid a moderating market.
Looking ahead, IndiGo is investing aggressively in wide-body aircraft to strengthen long-haul cargo services to Europe and Southeast Asia. The airline has already leased Boeing 787-9 aircraft and has a substantial order book for Airbus A350s, with deliveries scheduled to begin from 2027. These aircraft are expected to unlock higher cargo payloads on international routes.
The airline is also leveraging strategic partnerships with global carriers and logistics players, including Air France-KLM and FedEx, to supplement capacity where its own fleet deployment is limited.
However, the strong volume growth comes against a backdrop of operational disruptions and rising cost pressures. In December 2025, IndiGo faced widespread flight cancellations linked to crew availability issues following new Flight Duty Time Limitation (FDTL) norms and aircraft software updates. India’s aviation regulator, the Directorate General of Civil Aviation, issued a show-cause notice to the airline, citing planning and oversight lapses.
These disruptions have increased costs related to crew management, refunds, and operational recovery, prompting some analysts to flag near-term profitability risks. A few brokerages have trimmed price targets, warning of structural cost increases, even as long-term growth prospects remain intact.
IndiGo’s expansion is unfolding amid intensifying competition. Air India has outlined plans to triple its cargo capacity over five years, targeting 2 million tonnes annually, while SpiceJet continues to focus on domestic cargo expansion despite financial constraints.
Industry outlook remains constructive. The Indian air cargo market is estimated at USD 14.22 billion in 2025 and is projected to grow at a 5.8% CAGR through 2035, driven by e-commerce and high-value exports such as pharmaceuticals and electronics. According to the International Air Transport Association, global air cargo demand growth is expected to moderate to 2.4% in 2026.
While short-term challenges persist, analysts broadly agree that IndiGo’s fleet expansion, partnerships, and cargo-led international push position it well for sustained long-term growth, provided operational stability keeps pace with ambition.
Source: ET Infra
