Akasa Air, the Indian ultra‑low‑cost airline, reported a steep ₹1,983 crore standalone net loss for fiscal year 2024–25 (FY25), marking an 18.7% year-on-year increase. The escalating loss stems from rising costs across the board—including employee expenses, aircraft maintenance, airport fees, and foreign exchange fluctuations—coupled with operational constraints caused by delayed aircraft deliveries
🧾 Breakdown of Key Cost Drivers
| Category | YoY Increase | Impact |
|---|---|---|
| Employee costs | +36% | Cost surged as Akasa expanded its team |
| Maintenance expenses | +26.6% | Higher upkeep costs for fleet operations |
| Airport charges | +40.9% | Increased infrastructure fees |
| Forex losses | +181% | Currency swing costs spiked |
✈️ Limited Fleet Growth Due to Boeing Delays
Akasa Air ordered 226 Boeing 737 MAX aircraft, but only 30 have entered service to date, with just six arrivals in FY25. This significant delivery shortfall kept hundreds of pilots grounded—18% of its crew—hampering utilization rates and worsening fixed-cost pressures
🗣️ Company Response
An Akasa Air spokesperson emphasized that this loss phase aligns with the airline’s early investment cycles:
They also noted Akasa remains “net cash positive” at the operating level and ahead of their financial plan
🤝 Leadership Changes & Fleet Utilization
Akasa also experienced churn in key leadership positions:
- Ajit Bhagchandani (VP, In‑Flight Services) and three other senior executives resigned
- As of June 2025, the airline was operating around 1,070 weekly flights, up 13.2% year-on-year
Despite this, fleet expansion remains restricted until Boeing fulfills its delivery schedule.
🌍 Industry Context
While Akasa faces losses, other airlines performed better in FY25:
- IndiGo recorded a net profit of ₹7,258 crore.
- SpiceJet returned to profitability (₹61.9 crore).
- Air India achieved operational profitability and reduced its losses
Industry analysts anticipated larger sectoral losses for FY25, though Akasa’s specific debt position and cost structure made its situation more acute .
🔭 Future Outlook
- Akasa aims to increase Available Seat Kilometers by ~40% year-on-year and projects similar growth for FY26
- It expects 196 more aircraft deliveries over the next seven years, which should help spread fixed costs and generate cash through sale-and-leaseback arrangements
- Operational improvements in pilot utilization—now at 78% versus 60% in December 2024—are underway, targeting 100% by end-2025 business-standard
✅ Bottom Line
Akasa Air’s ₹1,983 cr FY25 loss underscores the high-cost nature of early-stage airlines, especially under fleet constraints and cost inflation. However, with strategic financing, planned deliveries, and a stable cash position, the airline remains cautiously optimistic as it scales capacity and positions itself in India’s fast-growing aviation sector.
