India’s newest airline Akasa Air, which was co-founded by late billionaire investor Rakesh Jhunjhunwala, has reported a loss (operating result) of Rs 602 crore for eight months in FY23.
In a reply to a question in Lok Sabha, the Ministry of Civil Aviation shared Akasa Air’s operating revenues and expenses for the last fiscal. Akasa Air started its operations in August 2022.
The airline earned Rs 777.8 crore, while its operational expenditure stood at Rs 1,866 crore till March 2023, the MCA data said.
The airline has said the expense was mainly due to pre-operating costs and the cost of setting up stations and new routes.
Despite facing initial financial challenges, Akasa Air recently said the airline is well capitalised with adequate funds to place a three-digit aircraft order by the end of 2023.
Currently operating with 19 aircraft, Akasa Air is preparing to introduce its 20th aircraft this month, thereby becoming eligible for international operations.
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“I think we are adequately funded. We were adequately funded to order 72 aircraft. We are adequately funded to add 4 more aircraft on top of that were adequately funded to place another three-digit aircraft order between now and the end of this year," said Vinay Dube, the Chief Executive Officer of Akasa Air.
With its increasing market share, expanding network, and ambitious growth plans, the newest airline is growing to be a key player in the competitive aviation market, especially in the absence of low-cost carrier Go First.
In March 2023, Akasa Air carried 4.20 lakh passengers, and by June, this number had surged to 6.18 lakh passengers. The airline’s commitment to reliability and customer service has evidently won over the hearts of travellers.
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Go First operated an average of 163 daily flights in April as per DGCA data. Since its absence from May 3, the day it filed for bankruptcy proceedings at NCLT, other airlines have gained in terms of travellers. According to DGCA data, Akasa’s market share stood at 3.3 per cent in March 2023. It rose to 4.6 per cent in June.
Dube, while speaking about Akasa Air’s future trajectory, said he envisions Akasa Air as an airline with 76 aircraft, a thriving domestic market, multiple international gateways, and a commitment to exceptional customer service by March 2027.
(With agency inputs)
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