The carrier currently operates a fleet of 39 aircraft and plans to have 226 aircraft by 2032 | Photo Credit: FRANCIS MASCARENHAS

After sustaining operational profitability for six consecutive months, Akasa Air (SNV Aviation) is targeting over 30 per cent capacity growth in FY27 while remaining on track for an initial public offering (IPO) in the next two to four years, despite geopolitical tensions and fuel price volatility continuing to weigh on the aviation sector, the airline’s Chief Financial Officer (CFO) Ankur Goel said.

Speaking in Delhi on Monday (June 23) on the airline’s financial performance and growth outlook, Goel said Akasa was EBITDA-positive for six straight months from September to March and remained on a “certain and deterministic” path to profitability, driven by continued fleet inductions and expansion of its domestic and international operations.

This trajectory, said Goel, is backed by continued aircraft inductions and expansion of its domestic and international network.

Notably, the airline ended FY26 with a fleet of 37 aircraft, up from 27 aircraft a year earlier, after adding 10 new Boeing 737 MAX aircraft during the year.

All additions, Goel pointed out, were brand-new aircraft and not leased or second-hand planes.

Meanwhile, Akasa’s capacity, measured in available seat kilometres (ASKs), grew by around 30 per cent year-on-year in FY26 and is expected to increase by more than 30 per cent again in FY27.

The airline, Goel said, expects to continue expanding at a compounded annual growth rate of 30-40 per cent over the next five years.

financial profile

According to Goel, the growth had come alongside an improving financial profile.

In terms of financials, excluding the impact of accounting changes related to foreign exchange liabilities under Ind AS 116, the airline’s losses in FY26 were lower than in FY25 despite the 30 per cent increase in capacity.

“This was a year that redefined us. Capacity improved by 30 per cent year-on-year and our loss numbers were actually better compared to FY25,” he said.

Besides, the airline’s unit revenues (RASK) improved by about 10 per cent on an adjusted basis despite rapid capacity additions, while its total unit cost, or cost per available seat kilometre (CASK), declined by 4 per cent year-on-year.

Excluding fuel, unit costs remained broadly stable despite currency depreciation and other external pressures, he said.

As a result, Akasa’s EBITDA margins improved by a staggering 60 per cent during the year, bringing the airline closer to full-year operational profitability.

Furthermore, Goel said the airline remained “cautiously optimistic” about the operating environment as geopolitical tensions and fuel price volatility had eased somewhat in recent weeks.

Goel noted that the unprecedented spike in aviation turbine fuel (ATF) prices earlier this year had posed a significant challenge for airlines.

However, government measures, including capping fuel price increases and reducing airport charges at certain airports, had helped maintain the viability of airline operations.

capacity deployment

On capacity deployment, Goel said Akasa’s international operations now account for around 25 per cent of its total capacity and could rise to nearly 40 per cent over the next few years.

Additionally, the airline plans to deepen its presence in Southeast Asia, with Hanoi set to become its latest international destination in September.

The carrier currently operates a fleet of 39 aircraft and plans to have 226 aircraft by 2032.

In addition, Goel said Akasa had no plans to alter its business model by introducing premium cabins or leasing older aircraft and remains committed to operating a single-class, all-economy fleet.

On a potential IPO, he reiterated the airline’s earlier timeline of two to four years.

“We are not creating an airline to do an IPO. We are creating an airline that creates value and serves consumers. An IPO will be an output of building a great airline,” he said.

Despite short-term headwinds, Goel said Akasa’s long-term growth plans remained intact, with the airline continuing to hire pilots, cabin crew and engineers while taking deliveries of new aircraft and expanding its network.

Published on June 23, 2026