Investing.com -- Akasa Air plans to increase capacity by 30% in the fiscal year ending March 2027, the airline’s finance chief said on Tuesday. The carrier is also considering using a government emergency credit guarantee program.
The Indian airline reported a 37% rise in operating revenue for the year that ended March 31. Capacity, measured in available seat kilometers, grew 30% during the same period. In the previous fiscal year, Akasa recorded revenues of 45.83 billion rupees ($483.39 million) and a net loss of $209.16 million.
Akasa Air, which began operations in 2022, holds a 5.8% share of India’s domestic aviation market. The market is dominated by IndiGo and Air India. The airline operates 39 Boeing 737 MAX aircraft and has faced delivery delays from the U.S. manufacturer.
The airline did not provide specific forecasts for Boeing deliveries beyond its general capacity target for the current year.
Chief Financial Officer Ankur Goel said the airline is evaluating participation in a government program that offers 181 billion rupees ($1.9 billion) in credit guarantees. The scheme is designed to help businesses and airlines manage short-term liquidity issues related to the Iran war.
"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 operations represented 25% of Akasa’s capacity in the past fiscal year. Goel said this share could increase to 40% over the next few years as the airline expands its international network.
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