Akasa Air aims to expand its passenger capacity by about 30% this fiscal year, bucking an industry trend of caution as larger rivals trim routes or rein in growth plans. The country’s third-largest airline by domestic market share is pushing ahead after narrowing losses and reporting six straight months of operational profitability before the West Asia war-led disruptions hit the momentum.
Akasa’s rivals are playing it safe. Market leader IndiGo has indicated that fleet adjustments—including return of older leased aircraft that consume higher fuel—could lead to some route rationalization and it has also announced overseas route cuts. India’s second largest carrier Air India has already trimmed capacity on some domestic and international routes to improve operational reliability. SpiceJet, on its part, continues to grapple with financial constraints.
Akasa Air, backed by the late billionaire investor Rakesh Jhunjhunwala, started commercial operations in August 2022. Run by SNV Aviation Pvt. Ltd, the airline posted a 37% rise in revenue in FY26, although it did not disclose the absolute revenue or loss figures.
The airline said its losses in FY26 were lower than the previous year even with a 30% increase in capacity, a performance chief financial officer Ankur Goel described as unusual in an industry where rapid expansion often widens losses before economies of scale kick in.
“Our capacity in FY27 is likely to improve by around 30% on a year-on-year basis,” Goel said at media roundtable on Tuesday. “We will continue growing at about 30-40% year-on-year for the next five years.”
Analysts back expansion
Market experts do not rule out bright prospects for Akasa.
“Akasa is receiving one aircraft a month or three in every two months, which is working out to be 12-18 jets a year. So, a 30% capacity growth looks feasible,” said Gagan Dixit, vice-president, oil & gas and aviation, at brokerage firm Elara Capital. “Despite a 25% airfare rise in the domestic sector in June, there is demand. So, airlines that have aircraft in place or where deliveries are coming on time, as is the case with Akasa, will see capacity growth ahead of some players.”
Jainam Shah, an aviation analyst at brokerage firm Equirus Securities, said Akasa has consistently expanded capacity. “With a strong load factor of around 90% and a focus on deploying additional aircraft on high-demand routes, capacity growth is expected to remain healthy,” he said. “Given its relatively small base, every fleet addition meaningfully enhances capacity.”
Akasa’s Goel said that a key milestone for the airline came between September and March, when it generated positive EBITDAR—earnings before interest, taxes, depreciation, amortization, and rent—for six consecutive months.
“For six consecutive months, from September to March, till the war broke out, we were actually EBITDAR positive,” he said. Despite the six-month profitability streak, Akasa is yet to report a full-year profit.
Industry headwinds
The West Asia-triggered disruptions then led to a sharp rise in fuel prices that hurt profitability April onwards. Goel described the increase in fuel prices as “completely unprecedented”, noting that airlines were forced to contend with both higher crude prices and elevated refining spreads.
“We remain cautiously optimistic,” Goel said, adding that travel demand remains strong, apart from improving operating metrics and the steady aircraft induction plan continuing to be in place.
Akasa’s now has 39 aircraft in its fleet, and it expects to receive 10-12 more jets this fiscal year. Its long-term plan is to expand the fleet to 226 aircraft by 2032. The airline currently flies to 27 domestic and seven international destinations.
India’s aviation sector has been hit by a series of disruptions over the past year. Airspace restrictions over Pakistan since April 2025, a fatal crash involving an Air India flight bound for London, and operational disruptions across carriers like IndiGo weighed on the industry before the US-Iran war in West Asia flared up, pushing up fuel prices and increasing cost pressures on airlines.
Profits across airlines have come under pressure. IndiGo reported a net loss of ₹2,394 crore in FY26, while the Tata Group’s unlisted Air India Group, including Air India Express, is expected to report losses of nearly $3 billion (over ₹26,000 crore). SpiceJet is yet to announce its results for FY26.
International push
Despite the disruption, Akasa exuded confidence over the demand remaining robust.
Industry load factors have remained close to 85%, while booking trends continue to be healthy. “The demand remains on track, the growth remains on track. Short-term headwinds exist, yes, which we have to first tide through,” Goel said.
The airline also plans to steadily increase the share of international operations in its network. International flying currently accounts for about 25% of capacity and the airline aims for around a 40% share over the next few years. The next phase of international expansion is expected to focus on destinations in Southeast Asia.
“Growth remains on track,” Goel said, without naming any specific destinations under consideration.