Despite geopolitical uncertainties and disruptions across the aviation industry, Akasa Air remains bullish on the long-term growth of Indian aviation. The airline is continuing to expand its network and fleet while sharpening its focus on operational reliability, customer experience, international expansion and maintenance infrastructure. Vinay Dube, founder and CEO of Akasa Air, tells Akbar Merchant that despite near-term volatility, the airline remains confident about the sector’s long-term trajectory.
How was FY26 for Akasa Air?
It was a strong year for us despite challenges such as the Pehelgam terror attack, Operation Sindoor and the Air India tragedy, all of which impacted traveller sentiment. Even then, Akasa delivered over 40% top-line growth, while EBITDA margins and unit revenues improved significantly. Reliability metrics including on-time performance, cancellations and baggage delivery also remained strong.
Today, Akasa operates 38 aircraft, has an order book of 226 aircraft, and has flown over 27 million passengers and more than 11,000 pets since launch.
How important is international expansion to Akasa’s strategy?
Last year we added Phuket and expanded Jeddah operations, while this year we announced Vietnam. Akasa today serves 34 destinations, including 27 domestic and seven international cities.
What has passenger growth been like and what is the outlook for FY27?
Demand in April and May has remained healthy. However, given the ongoing Iran conflict and broader geopolitical uncertainties, it is still too early to make projections for the full year. The outlook will depend on how long the situation persists.
How has the West Asian conflict impacted operations?
Before the conflict, we operated to Kuwait, Doha, Abu Dhabi, Riyadh and Jeddah. Nearly 80-85% of our West Asian operations were concentrated in Abu Dhabi and Jeddah, which have been least affected. We are currently operating full schedules to Abu Dhabi and Jeddah. Riyadh, Kuwait and Doha remain suspended, though these routes accounted for only around 15% of our West Asian operations.
Have you reduced flights this summer amid rising fuel costs and geopolitical uncertainty?
No. Other than temporary suspensions to Riyadh, Doha and Kuwait, we are operating planned schedules. These suspended routes account for only around 14 weekly frequencies out of more than 1,000 weekly frequencies operated by Akasa. Compared to last year, our schedule remains significantly larger due to fleet growth.
What kind of support would airlines seek from the government during such difficult periods?
I genuinely believe the government has done an impressive job in aviation over the past several years. Whether it is ATF pricing, VAT reductions in cities like Mumbai and Delhi, or steps around airport charges such as Navi Mumbai’s UDF, the pace of decision-making has been commendable. India today has a professional regulator and a ministry that actively cares about the sector. Sometimes we do not give enough credit to how quickly aviation-related issues are being addressed here.
How do you see the outlook for the Indian aviation market amid geopolitical uncertainty?
Akasa remains extremely bullish on the long-term future of aviation in India. Every year there are ups and downs in the industry, but aviation has always gone through cycles.
Which domestic markets are driving growth?
Growth is visible across India. Over the last six months we added destinations such as Darbhanga and Dibrugarh, while Navi Mumbai has also opened up. We have additionally announced operations from Noida International Airport.
Can you share details on Haj operations?
Haj operations are allocated through a government tender process. This year, Akasa is operating 156 Haj flights from Srinagar, Mumbai, Nagpur, Indore, Ahmedabad, Bengaluru and Kozhikode.
What is Akasa’s strategy around maintenance and MRO?
Routine line maintenance activities are handled internally to some extent, while larger checks such as C-checks are done with partners like GMR in Hyderabad. Engine maintenance is handled with partners including CFM and ST Engineering. We have also signed an agreement with Noida International Airport for our first hangar facility, expected around 2028, which will enhance maintenance capabilities further.
What is Akasa’s view on long-haul operations and widebody aircraft?
We ask ourselves that question every year and, for the last five years, the answer has remained the same, long-haul widebody operations are not for us. Our network is still relatively small, and introducing aircraft types for just a few routes adds complexity in maintenance, crew training and operations. Our view remains that widebody operations are not for Akasa.
Will Akasa continue focusing on Boeing 737 MAX aircraft?
Yes. Our overall order book of 226 aircraft also includes the larger Boeing 737 MAX 10 aircraft, although those are still some time away because certification is pending. The MAX 10 will offer slightly more capacity, closer to the Airbus A321 category.
Did the revised Flight Duty Time Limitation (FDTL) norms impact Akasa?
Like all airlines, we were economically impacted because cockpit crew utilisation changes under the revised norms. However, we had already been preparing for this for nearly two years. Did it disrupt passengers? No. We managed the transition through planning without operational disruptions. The economics affect all airlines similarly, but proper planning helps manage the impact smoothly.