Akasa Air targets 30% capacity boost this fiscal year

Akasa Air ​plans to raise passenger capacity by ‌30% in the current fiscal ​year, the airline said ⁠on Tuesday, after posting a 37% rise in annual revenue and a ‌narrower loss.

The unlisted airline did not disclose absolute ‌revenue and income figures, but ‌added ⁠that it was thinking ⁠of tapping the Indian government’s loan guarantee and price stabilisation schemes for the ​industry.

The government this ‌month approved a $1 billion fuel stabilisation fund to help keep jet fuel prices in check ‌after they surged in the ​wake of the Iran war. Jet fuel is ⁠typically the largest expense for airlines.

Akasa said that its cost per ‌available seat kilometre fell 4% on the year and that margins improved by 60%, aided by restructuring. It added 10 Boeing 737 MAX aircraft ‌during the year that ended in ​March.

Akasa Air, which began commercial operations in 2022, has ⁠a 5.4% share of India’s domestic ⁠aviation market, which is dominated by IndiGo and Tata ‌Group-backed Air India.