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Akasa Air Forecasts Boeing Delivery Surge and Near-Term Profitability

Akasa says its planned $75–100 million capital raise is proceeding smoothly with regulatory approvals in place to fuel its expansion plan.

An Akasa Air passenger aircraft taxis on the tarmac at Chhatrapati Shivaji International Airport in Mumbai, India, May 2, 2023. REUTERS/Francis Mascarenhas/File Photo
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Overview

  • CFO Ankur Goel said Boeing 737 MAX deliveries will accelerate in coming years, keeping the target of a 226-aircraft fleet by 2032 on track.
  • The carrier’s planned $75–100 million capital infusion is advancing without regulatory obstacles and will fund growth, with backing from investors including Azim Premji and Rakesh Jhunjhunwala’s family office.
  • Akasa recorded a 48% jump in available seat kilometres and a 49% revenue increase in FY 2024-25 and expects over 30% further capacity growth this fiscal year.
  • Management projects operational profitability imminently as unit costs decline and revenue per seat improves following capacity and cost efficiencies.
  • The low-cost airline holds a 5.3% share of India’s domestic market as it challenges incumbents IndiGo and Air India with rapid network expansion.