Akasa Air plans to increase capacity by 30% (Available Seat Kilometres, (ASKs)) in the financial year 2027 and aims to sustain aggressive growth of 30–40% year‑on‑year over the next five years, a senior airline executive said on Tuesday. After building a strong presence in the Gulf, Akasa said its next phase of international expansion will focus mainly on Southeast Asia.
“We are likely to add one-third or about 30% of the capacity this fiscal year over the capacity we ended with in FY26. Last fiscal year, we added about 30% of capacity over FY25 capacity. These are very big numbers. The capacity is likely to continue growing in the range of 30% to 40% over the next 5 years. So this growth is not ending, it will get carried on, and we will continue to add more capacity,” said Akasa Air Chief Financial Officer, Ankur Goel, on Tuesday.
Akasa’s plan to expand its capacity comes as larger players in the Indian aviation market – Air India and IndiGo – have curtailed operations in the wake of the West Asia crises, which triggered a sharp jump in jet fuel prices and led to operational challenges.
Goel said that Akasa is well capitalised to face short-term headwinds and is cautiously optimistic. He said that despite the challenges, passenger demand continue to remain strong.
Goel also stated that the airline would like to launch an initial public offering (IPO) in 2-4 years, provided they achieve certain financial milestones, such as turning profitable and having a robust cash flow. He added that the airline's net loss narrowed in FY26 compared to FY25, and they turned Ebidta positive for six months between September 2025 and March 2026.
"IPO will happen for us. It's not a question of if, it's a question of when. We are not creating an airline to do an IPO. We are creating an airline that really creates value," he said. Akasa started operations in 2022, and at present has a market share of 5.8% in the domestic aviation market.
When asked about the impact of Pakistan airspace closure on Akasa’s international operations, Goel said that this has little to no impact on them, as most of their international operations take place from Mumbai and Bengaluru, thus avoiding the use of the airspace, which has been banned for Indian airlines for more than a year.
Goel stated that the airline's international operations accounted for about 25% of total capacity during FY26 and that share could rise to 40% over the next few years as it expands further. He added that the airline would continue to look at international destination which falls under the 5-6 hour duration.
Akasa launched Phuket services during the year and will start operations to Hanoi to capture the growing demand for travel in the Southeast Asia region. On fleet size, Goel said that the airline is confident of having 226 planes by FY32. In FY26, Akasa added 10 Boeing 737 MAX aircraft and had a fleet of 37 aircraft. This number currently stands at 39.
During FY2025–26, Akasa Air’s operating revenue increased 37%, supported by a 30% growth in ASKs. The airline’s Cost per Available Seat Kilometre (CASK) reduced by 4% year-on-year, as it absorbed significant industry cost pressures while EBITDAR margins improved by a staggering 60%. The airline continued to witness strong customer demand, maintaining load factors of approximately 88% throughout the year.
During the year, Akasa strengthened its financial foundation through the successful completion of a strategic investment transaction, welcoming Premji Invest, funds managed by 360 ONE Asset, Claypond Capital, and additional investment from the Jhunjhunwala family and associates.