Akasa Air is targeting a 30% increase in capacity for the fiscal year ending March 2027, the airline's finance chief said on Tuesday, even as it contends with delivery delays from its plane supplier and evaluates a government-backed emergency credit guarantee program.
The carrier reported a 37% rise in operating revenue for the fiscal year that ended March 31. Over the same period, capacity - measured in available seat kilometers - expanded by 30%. In the prior fiscal year, Akasa recorded revenues of 45.83 billion rupees ($483.39 million) and posted a net loss of $209.16 million.
Founded in 2022, Akasa Air holds a 5.8% share of India’s domestic aviation market, a sector that remains dominated by larger rivals including IndiGo and Air India. The airline currently operates 39 Boeing 737 MAX aircraft and has experienced delivery delays from the U.S. manufacturer.
The company did not provide a detailed schedule for additional Boeing deliveries beyond reiterating its general capacity goal for the coming year. Chief Financial Officer Ankur Goel said the airline is considering participation in a government scheme that offers 181 billion rupees ($1.9 billion) in credit guarantees.
"We have not drawn any funds from the ... scheme as of now, but this is something we continue to work with the banks on and continue to work with the (Indian aviation) ministry," Goel said.
According to Goel, international services made up 25% of Akasa's capacity in the past fiscal year. The airline expects that proportion could grow to 40% over the next few years as it expands its international network.
While Akasa pursues a meaningful capacity increase, the carrier is navigating three main operational constraints identified in its public remarks: fleet delivery timing from Boeing, the broader competitive landscape in India’s domestic market, and the potential need for short-term liquidity support through the government guarantee program.
Akasa's revenue growth and capacity gains in the latest fiscal year indicate commercial momentum, but the airline has not signaled that it has used the government facility. The company continues discussions with banks and the aviation ministry on the guarantee option as it plans to scale operations and extend international services.