Akasa posted an operating loss of ₹602 crore in FY23

Akasa Air marks successful first year with impressive market share and expansion plans.

In a response to the Lok Sabha, the Ministry of Civil Aviation disclosed Akasa Air’s operating revenues and expenses for FY23. The airline reported operating revenues of ₹777 crore, while its operating expenses amounted to ₹1,380 crore. Unfortunately, the airline posted a loss (operating result) of ₹602 crore, provisionally. The airline started operations in August 2022, thus, these numbers are for eight months.

Also read: Akasa Air targets 1,000 weekly flights by August

Initial hiccups

However, industry experts have said that it is “natural” for an airline to “post losses in the first few years because its expenses are usually higher initially.”

Akasa Air, the airline founded by Vinay Dube and Praveen Iyer and backed by esteemed investor Rakesh Jhunjhunwala, is celebrating a successful first year of operations since its launch in August 2022. The airline has achieved milestones, but it also faced some challenges, as revealed in its financial results for FY23.

Despite facing initial financial challenges, Akasa Air has proven itself as a formidable player in India’s aviation industry. With its increasing market share, expanding network, and ambitious growth plans, the airline is set to soar to greater heights in the years to come, solidifying its position as a key player in the competitive aviation market.

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.

According to data from the Directorate General of Civil Aviation (DGCA), the airline’s market share stood at 3.3 per cent in March 2023. However, within just a few months, the airline managed to increase its market share to an impressive 4.6 per cent in June. This growth can be attributed to the airline’s dedication to customer satisfaction and its expanding network.

Expansion plans

Since its inception to date, the airline currently operates over 900 weekly flights, serving 35 unique routes that connect 16 cities. From Mumbai to Kolkata, Akasa Air has established a robust network that caters to the needs of travellers across the country.

Akasa Air has ambitious plans for growth and expansion. The airline has already placed a firm order for 76 Boeing 737 MAX airplanes, signalling its commitment to modernizing and upgrading its fleet. Moreover, the airline is aiming to go international by the end of this year, a move that could open up new opportunities and markets.

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