Akasa Air raising ₹1050cr to offset jet fuel, Iran disruptions
Akasa Air, India's youngest airline, is raising ₹10.5 billion ($110 million) to deal with rising jet fuel prices and flight disruptions caused by the Iran conflict.
Jet fuel accounts for about 40% of an airline's operating costs, so it is seeking ₹8 billion in equity, with ₹5 billion from existing owners and the rest from one Asian and one American investor.
Akasa Air negotiating ₹250cr government-backed debt
Even with these challenges, Akasa is pushing ahead, negotiating ₹2.5 billion in debt through a government-backed program for war-affected airlines.
While other Indian airlines cut capacity this spring, Akasa grew flights by over 13% year over year in March and April.
Akasa revenue up 37% last FY
Akasa's revenue jumped 37% last fiscal year, thanks to a 30% increase in capacity (measured by available-seat-kilometers).
CFO Ankur Goel says it is planning another big boost this fiscal year.
The airline now runs a fleet of 40 Boeing 737 MAX aircraft, showing it is not slowing down anytime soon.