Akasa Air reports a loss of Rs 602 crore

India’s newest airline Akasa Air posted an operating loss of ₹602 crore. While the airline earned ₹777.8 crore, its operational expenditure stood at ₹1,866 crore, according to a data furnished by minister of state for civil aviation VK Singh in Lok Sabha. The airline started operations last August and results are up till March 31, 2023. However, sources said the expense was mainly due to pre-operating costs and cost of setting up stations and new routes.

“It is only after you reach a certain size and scale and the costs incurred on route developments start spinning money. The airline has done well though, expanding aggressively and launching new routes,” said a person familiar with Akasa’s plans.

IndiGo in its first year 2006-07 registered losses of ₹174.1 crore and had six aircraft. It turned profitable raking in ₹82 crore in its third year of operation.

In just 11 months since it began operations, Akasa Air has already cornered a market share of 5%, higher than SpiceJet, while adding a record 19 aircraft to its fleet. The airline had placed an initial order of 72 Boeing 737 Max aircraft, and it added another four aircraft to the order in June. Co-promoter and CEO Vinay Dube said the airline will place an order of more than 100 aircraft by the end of this year. Sources said the airline was looking to raise $75-$100 million to fund its next round of expansion.