How Did Akasa Air Become India’s Third Largest Airline in Just 2 Years?

Akasa Air, a two-year-old airline, has surprised the aviation industry by placing an order for 150 Boeing 737 MAX aircraft worth US$20 billion. This is the largest order ever by a new airline in India and positions Akasa among global buyers. The airline launched in 2022, just as passenger traffic in India began to rise steadily above pre-pandemic levels.

How is Akasa Air Different From Other Airlines? 

Unlike older airlines that relied heavily on bank loans, Akasa is funded largely by private investors. Recently, it raised around ₹1,200 crore ($125 million) from new investors alongside existing backers. This investment reflects growing confidence in India’s aviation sector, which has long been seen as risky.

What is the Market Share of Akasa Air?

Despite being new, Akasa has become the third-largest airline in India, after IndiGo and Air India, which together control about 90% of the market. The airline has been careful to grow steadily, ensuring its fleet and network expand without overextending resources. It now operates 30 Boeing 737 MAX aircraft and has increased its domestic and international routes, including flights to Kuwait, Abu Dhabi, and Riyadh.

How is Akasa Air Growing Despite Posting ₹1,983 Crore in Losses? 

Akasa faces several challenges. The airline’s net losses widened to ₹1,983 crore in 2024–25, driven by employee costs, maintenance, and airport charges. There have been delays in aircraft deliveries and some internal issues with pilots, affecting operations. However, unit economics such as revenue per seat, cost per seat, and operating margins are improving, showing that the airline is building scale efficiently.

Looking Forward

Akasa aims for long-term growth rather than short-term market share. The airline plans to expand internationally to Southeast Asia, Central Asia, South Asia, and parts of Africa. A strong order book, professional management, and improved infrastructure in India provide the foundation for this expansion. The airline also focuses on safety, service quality, and operational efficiency, key elements for building a sustainable airline.

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Conclusion

Akasa Air’s journey highlights the changing landscape of Indian aviation. While challenges remain, the airline’s strategic planning, strong funding, and disciplined growth give it a chance to become a significant player in both domestic and international skies in the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.