Akasa Air Targets 30% Capacity Growth Despite Geopolitical Headwinds

Akasa Air has reaffirmed its aggressive expansion strategy, stating that it aims to grow its operational capacity by around 30% in the current financial year, even as geopolitical tensions and rising fuel prices create challenges for the aviation sector.

The airline’s Chief Financial Officer, Ankur Goel, said on Tuesday that the long-term growth outlook remains intact and has not been reconsidered despite external uncertainties.

The airline, which has been in operation for nearly four years, currently operates a fleet of 39 Boeing 737 MAX aircraft.

Around 25% of its total capacity is allocated to international routes, reflecting its gradual push into overseas markets alongside domestic expansion.

For the financial year 2025–26, Akasa Air reported strong operational performance, with operating revenue rising 37% year-on-year.

During the same period, its capacity, measured in Available Seat Kilometres (ASKs), increased by 30%, indicating robust demand and effective utilisation of its fleet.

Goel said the airline’s immediate priority is to remain well-capitalised, ensuring it has sufficient financial buffers to manage fluctuations in fuel costs, geopolitical disruptions, and broader industry volatility.

He added that Akasa Air currently has adequate liquidity and capital support to navigate the evolving market conditions.

The aviation sector has been under pressure due to the ongoing West Asia conflict, which has contributed to elevated jet fuel prices.

Several airlines have responded by rationalising routes or temporarily reducing flight operations. However, Akasa Air has maintained its expansion trajectory despite these headwinds.

Looking ahead, Goel stated that the airline expects capacity to grow in the range of 30–40% annually over the next four to five years, underscoring its long-term ambition in India’s competitive aviation market.

He emphasised that the company’s strategic roadmap remains unchanged and is firmly on track.

Akasa Air currently operates flights to 27 domestic destinations and 7 international destinations, steadily building its network presence across key markets.

The airline continues to focus on expanding connectivity while strengthening operational efficiency and financial resilience.