Airline Plans 30% Capacity Increase for FY2027
Akasa Air (NYSE:ALK) is aiming to expand capacity by approximately 30% during the fiscal year ending March 2027, according to comments from the airline’s finance chief, as the carrier continues to grow despite ongoing aircraft delivery challenges.
The Indian airline is also assessing potential participation in a government-backed emergency credit guarantee programme designed to support businesses affected by disruptions linked to the Iran conflict.
Revenue Growth Continues to Outpace Market Expansion
For the fiscal year ended March 31, Akasa reported a 37% increase in operating revenue, while available seat capacity, measured in available seat kilometres (ASKs), rose by 30%.
In the previous financial year, the airline generated revenue of 45.83 billion rupees ($483.39 million) and recorded a net loss of $209.16 million.
The latest figures highlight the carrier’s continued expansion as it seeks to strengthen its position within India’s rapidly growing aviation market.
Boeing Delivery Delays Remain a Key Challenge
Founded in 2022, Akasa Air currently operates a fleet of 39 Boeing 737 MAX aircraft and holds a 5.8% share of India’s domestic aviation market.
The airline continues to face delivery delays from Boeing, which have affected fleet expansion plans across the industry.
While management reiterated its capacity growth target, the company did not provide detailed guidance regarding future aircraft deliveries from the manufacturer.
Government Credit Support Under Review
Chief Financial Officer Ankur Goel said the company is evaluating whether to access a government programme that provides up to 181 billion rupees ($1.9 billion) in credit guarantees.
The initiative was introduced to help airlines and businesses manage short-term liquidity pressures arising from the Iran war and its economic impact.
“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.
International Network Set for Further Growth
International routes accounted for approximately 25% of Akasa Air’s total capacity during the past fiscal year.
Management expects that figure to increase significantly over the coming years as the airline expands its overseas network and diversifies beyond the domestic market.
According to Goel, international operations could eventually represent around 40% of the airline’s overall capacity.
Building Scale in a Competitive Market
Akasa continues to compete against dominant Indian carriers including IndiGo and Air India, focusing on fleet expansion, network development and market share growth.
Despite supply-chain constraints and aircraft delivery delays, the airline remains focused on accelerating growth, increasing international exposure and strengthening its position within one of the world’s fastest-growing aviation markets.