Akasa Air plunges deeper into red

Akasa Air's standalone net loss rose 18.7 per cent year-on-year (Y-o-Y) to roughly ₹1,983 crore in 2024-25 (FY25), driven by rising employee costs, aircraft maintenance and airport charges, and a sharp increase in foreign exchange (forex) expenses, sources privy to the development told Business Standard.

- DEEPAK PATEL

While Akasa slipped further into the red, the other three major Indian airlines — IndiGo, SpiceJet, and Air India — fared much better in FY25. IndiGo remained highly profitable despite a slight Y-o-Y decline in profit. SpiceJet returned to the black and Air India reduced its losses while turning operationally profitable.

Responding to queries on its FY25 results, an Akasa Air spokesperson said the airline does not comment on speculation but added, "It is important to note that 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 (net) profits in these years. Running an airline is a business of fixed costs and needs some scale before we turn profitable. This is neither surprising nor unanticipated. Our robust business plan provides for these losses." The spokesperson added that Akasa remains "net cash positive" at the operating level and that "financially, we are ahead of our plans, and our investors have always believed in the long-term vision and fundamentals of Akasa".

The airline, which began operations in August 2022, saw employee costs rise by 36 per cent Y-o-Y in FY25, sources said.

Maintenance expenses grew by 26.6 per cent Y-o-Y, while forex costs surged by 181 per cent Y-o-Y, they added. Airport charges increased 40.9 per cent Y-o-Y in FY25.