- Akasa Air aims for 30% capacity growth in FY27 despite industry challenges
- The airline added 10 Boeing 737 MAX aircraft, growing its fleet to 39 planes
- Akasa Air's FY26 revenue rose 37%, with a 30% increase in seat capacity
Akasa Air is targeting a 30 per cent increase in capacity in the current financial year and targets 30 to 40 per cent annual growth in the next four to five years, despite geopolitical tensions, elevated fuel costs and broader industry challenges, the airline's Chief Financial Officer Ankur Goel told NDTV.
In a conversation with NDTV, Goel said the airline's long-term expansion strategy remains unchanged even as the aviation sector grapples with rising operational costs amid the ongoing West Asia conflict.
"Long-term plans have not gone through any rethink. Plans remain on firm footing," Goel said.
The airline added 10 new aircraft during the fiscal year, taking its fleet to 39 Boeing 737 MAX aircraft. The expansion allowed Akasa Air to maintain its strategy of operating an entirely new fleet without legacy leased aircraft while significantly boosting network capacity.
The airline currently deploys around a quarter of its total capacity on international routes and connects 27 domestic and seven international destinations.
Calling FY26 a "watershed year" for the airline, Goel said Akasa Air improved its financial performance, narrowed losses and remained EBITDA-positive for six months during FY26 and improved its EBITDA margins by around 60 per cent compared to the previous year, helped by a 4 per cent reduction in unit costs.
This is despite a challenging operating environment marked by mounting cost pressures from rising fuel prices amid the West Asia conflict, macroeconomic pressures and industry-wide headwinds.
Addressing concerns over rising aviation fuel prices, Goel acknowledged that airlines are facing "unprecedented fuel price pressure", but expressed confidence that the challenges would remain temporary.
The comments come as Akasa Air reported a strong FY26 performance, with operating revenue rising 37 per cent year-on-year and capacity, measured in Available Seat Kilometres (ASKs), increasing 30 per cent.
He also highlighted the carrier's strengthened financial position following a recent funding round, saying the fresh capital infusion has enhanced Akasa Air's liquidity and provided sufficient financial cushion to navigate market volatility.
"Our focus is to remain well-capitalised and we have enough cushion to tide through the current situation," he said.
Looking ahead, the airline plans to continue expanding its international operations while maintaining an aggressive growth trajectory. Akasa Air is also continuing pilot recruitment and other capacity-building measures as it works towards its long-term goal of building a fleet of 226 aircraft by 2032.
The airline, which has been operating for nearly four years, said its expansion plans remain intact despite uncertainty in the global aviation environment, with management expressing confidence in sustained demand growth and its ability to execute its long-term strategy.
