Akasa Air will post an operating profit very soon with increased aircraft utilisation and more international flights, Chief Financial Officer Ankur Goel said on Friday.
The airline's capacity will improve by 50 per cent in FY 2025 on a year-on-year basis with new aircraft additions and increased utilisation. At present, the airline operates 24 Boeing 737 Max aircraft and has 202 more on order which will be delivered till 2032.
“Our performance will be better in FY25 compared to the previous year. We will get stronger as we add more capacity and our margins will get better,” Goel said.
While the airline posted a loss for the second consecutive year there was an improvement in financial metrics. Loss is not unexpected in the initial years of business as airlines have fixed costs and need to achieve a certain scale to turn profitable.
The no-frills airline saw 340 per cent year-on-year growth in revenue in FY24. Unit revenue grew by 9 per cent and unit costs excluding fuel reduced by 23 per cent last fiscal year. As a result, its EBITDAR margin improved by 30 percentage points. EBITDAR refers to earning before interest tax depreciation amortization and rentals.
The airline received its last aircraft in February and hasn’t inducted a plane in five months. However, the airline management is satisfied with the aircraft delivery schedule and said moderation in growth is as per the plan.
The airline has flown over ten million passengers since its launch. Currently, it operates to 26 destinations including four overseas stations. It will start flights to Kuwait from August 23.