MUMBAI- Late Rakesh Jhunjhunwala backed Akasa Air (QP) has reported a strong performance in the Financial year 2023-24 (FY24) as it generated revenue of 3,144.80 crore INR.
The Mumbai-headquartered carrier however posted a loss of 1,670 Crore INR, reported Tofler, which is a business intelligence platform.
Akasa Air FY24 Revenue and Loss
Vinay Dube led Akasa Air’s losses increased to Rs 1,670.06 crore in FY2024, more than doubling from Rs 744.53 crore in FY2023.
The airline’s financial performance shows:
- Total income rose to Rs 3,144.38 crore from Rs 777.84 crore
- Total expenditure increased to Rs 4,814.44 crore from Rs 1,522.27 crore
- Operating expenses drove cash burn while maintaining the net cash-positive position
Chief Financial Officer Ankur Goel stated: “The foundational years of any airline are dedicated to investing in its people, fleet, training, operating infrastructure, and network, and hence no airline registers P&L profits in these years.”
Parent company SNV Aviation Pvt Ltd filed these results with the corporate affairs ministry, documenting the airline’s performance after two years of operations.
Goel projects improved performance for the current fiscal year, emphasizing the airline’s focus on infrastructure development and network expansion.
The financial results reflect Akasa Air’s investment phase, marked by:
- Significant revenue growth
- Higher operational costs
- Continued infrastructure development
- Fleet expansion
- Network growth
- Personnel training investments
These numbers demonstrate the typical growth pattern of a new airline focusing on market establishment and operational expansion.
Summary of Financial Performance
Akasa Air’s CFO Ankur Goel confirms airlines require multiple years to achieve break-even operations.
The airline’s FY2024 performance highlights:
- Capacity tripled year-over-year
- Revenue per Available Seat Kilometre increased by 10%
- Accumulated losses reached Rs 2,444.46 crore
- Negative net worth of Rs 2,009.77 crore
- Current liabilities exceed assets by Rs 210.76 crore
Goel outlined key strategies for achieving profitability:
- Yield improvement initiatives
- Cost reduction measures
- Capacity expansion
- International route development
The airline’s operational metrics as of March 2024:
- Fleet size: 24 aircraft
- Daily flights: Over 110
- Domestic operations started: August 7, 2022
- International operations launched: March 28, 2024
Goel projects sequential performance improvements:
- FY2025 results to surpass FY2024
- FY2026 expected to outperform FY2025
These projections reflect Akasa Air’s strategic growth plan, balancing expansion with financial sustainability goals.
According to DGCA India data, Akasa Air is consistently holding 4-5% of the total market share in the domestic market.
Raising $1 Billion
India’s youngest and greenest carrier plans to raise $1 billion (Over 8,400 Crore INR) in debt and equity over the next three years to expand its fleet and market share.
Akasa Air plans will receive over 50 new aircraft within the coming 2-3 years and will expand its domestic and international network rapidly. The airline’s management estimates that $1 billion will be needed to support this growth.
The Jhunjhunwala family, along with Co-Founder and CEO Vinay Dube, owns over 65% of the airline, with the family holding a 40% stake and they are the biggest stakeholder.
A consortium led by Premji Invest and Claypond Capital is in progressive talks to invest about $125 million (Approx 1,053 crore INR) in Akasa Air, according to a report from the ET.
Feature Image by Sandeep (@atc.spotter)
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