India's Akasa Air Reports Losses of Rs 602 Crore in FY23

India's newest airline, Akasa Air, co-founded by the late billionaire investor Rakesh Jhunjhunwala, has faced initial financial challenges as it reported a loss (operating result) of Rs 602 crore for eight months in FY23. Despite the setback, the airline remains optimistic about its future and is well-capitalized to pursue its growth plans.

According to the Ministry of Civil Aviation, Akasa Air earned Rs 777.8 crore in operating revenues, while its operational expenditure amounted to Rs 1,866 crore till March 2023. The airline attributed the high expenses to pre-operating costs and setting up stations and new routes.

Despite the losses, Akasa Air expressed confidence in its financial position, asserting that it has adequate funds to place a three-digit aircraft order by the end of 2023. The airline currently operates with 19 aircraft and is set to introduce its 20th aircraft this month, making it eligible for international operations.

Vinay Dube, the Chief Executive Officer of Akasa Air, assured that the airline is well-funded for its ambitious plans. He envisions Akasa Air growing to become an airline with 76 aircraft, a strong domestic market presence, multiple international gateways, and a commitment to exceptional customer service by March 2027.

Akasa Air's increasing market share and expanding network position it as a key player in India's competitive aviation market, particularly with the absence of low-cost carrier Go First. The airline's dedication to reliability and customer service has been acknowledged by travellers, with passenger numbers surging from 4.20 lakh in March 2023 to 6.18 lakh by June.

Despite the initial financial hurdles, Akasa Air remains optimistic about its growth trajectory and aims to establish itself as a prominent player in the aviation industry, offering seamless domestic and international travel experiences with a strong focus on customer satisfaction.