Akasa Air Targets 30-40% Growth Amid Aviation Challenges, CFO Says
Akasa Air, India’s third-largest airline, plans to maintain a 30-40% growth trajectory over the next five years despite challenges including the West Asia conflict and rising aviation fuel prices, according to CFO Ankur Goel. The airline also aims to expand passenger capacity by over 30% year-on-year in fiscal year 2027 (FY27), Goel stated during a press conference.
Akasa Air’s Financial Performance in FY26
The airline reported a narrowed net loss in FY26 compared to FY25, despite a 30% increase in capacity, Goel said. While exact figures were not disclosed, the CFO highlighted that Akasa achieved EBITDA (earnings before interest, taxes, depreciation, and amortization) positivity for six months in FY26, a milestone he described as “reinforcing confidence in the path to profitability.”
Unit revenue, a measure of revenue per seat kilometre, rose 10% in FY26, while unit costs fell 4% and EBITDA margins improved by 60%, according to Goel. In FY25, Akasa’s standalone net loss widened 18.7% year-on-year to ₹1,983 crore, driven by higher employee costs, aircraft maintenance, airport charges, and forex expenses.
IPO Plans and Strategic Priorities
Goel confirmed Akasa’s intention to pursue an initial public offering (IPO) within two to four years, though he emphasized that listing decisions would follow business performance rather than serve as a primary goal. “IPO will happen for us. It’s not a question of if, it’s a question of when,” he said, adding that milestones like sustained EBITDA positivity and profitability would guide the timing.
The airline currently operates 39 aircraft, with plans to grow to 226 by 2032. As of FY26, Akasa’s fleet included 37 aircraft, with 10 new Boeing 737 MAX planes added during the year. Goel reiterated the airline’s commitment to Boeing despite industry-wide supply chain challenges, stating, “Our trust on Boeing has only increased from what it was earlier.”
Expanding International Reach Amid Geopolitical Risks
Akasa’s international operations accounted for 25% of total capacity in FY26, with services to Phuket and upcoming flights to Hanoi. Goel noted that the airline’s international routes, including those to Southeast Asia and the Gulf, do not overfly Pakistan, minimizing the impact of Pakistani airspace closures on Indian carriers. “Our flights to Phuket or Hanoi won’t overfly Pakistan,” he said.
The airline also plans to leverage its International Financial Services Centre (IFSC) leasing entity in GIFT City for future aircraft leasing as India’s aviation financing ecosystem develops.
Challenges and Outlook
Indian airlines face pressure from rising aviation turbine fuel (ATF) prices and operational disruptions linked to the West Asia conflict. Goel expressed “cautious optimism” as fuel prices have eased from peak levels, while passenger demand remains strong. Akasa’s focus on all-economy configurations, with enhanced legroom and ancillary services, underscores its strategy to differentiate in a competitive market.
“We’re not creating an airline to do an IPO. We’re creating an airline that really creates value,” Goel said, highlighting the company’s long-term vision.