India's Akasa Airlines is about to expand its operational capabilities soon amid optimism that new aircraft delivery will be picked up in the coming years.
Low-cost operators who launched their operations in 2022 are expected to seek “over 30%” growth this fiscal year, which ends on March 31, 2026.
An airline executive said at a media briefing on July 22 that his carrier is seeing the maximum deliveries of 737 recover in the coming years and expands his business.
Low-cost operators were affected by long-term production delays in the 737 Max program. This was faced with regulatory oversight after blowing up cabin panels in flight in 2024.
Akasa has operated only 30 737 aircraft so far. This is far below the initial forecast for new aircraft delivered every two weeks. The carrier has orders for the largest aircraft of 226 737, including up to 10 seconds.
According to a Reuters report citing media briefing executives, the carrier hopes to reach the fleet size covered by the 226 jet by 2032.
Still, recent developments at Boeing suggest that the 737 Max has improved delivery performance. Ryanair chief Michael O'Leary on July 21st said Boeing's delivery “quality and timeliness” has “dramatically improved” over the past year, with the low-cost carrier winning five 737s earlier than planned.
Akasa is seeing good financial performance
Akasa reports “robust growth across financial parameters” for the year ending March 31st. Without disclosing specific numbers, the airline says revenues increased 49% year-on-year, while its unit costs (excluding fuel) fell 7%.
During the fiscal year, the airline carried 16 million passengers.
Although they did not provide profit data, the airline added losses the previous year, recording a loss of $194 million.
Ankur Goel, the airline's finance chief, added: “Acasa Airlines' financial performance reflects the strength of its business model and the disciplined implementation of its strategy. We are optimistic about the future and look forward to building on the momentum of robust financial and commercial performance over the next few years.”
