Akasa Air officially took off in August 2022 and is yet to reach its first anniversary, but it has been making significant progress in the Indian airline industry.
The numbers show that the airline posted an income of 7.77 billion Rupees ($94.5 million) while operating costs stand at 18.66 billion Rupees ($226.84 million), resulting in an operating loss of 6.02 billion Rupees ($73.18 million).
The airline garnered attention for being backed by the late billionaire Rakesh Jhunjhunwala, who is known for his successful ventures. Akasa Air’s situation became uncertain after the business mogul passed a week after the airline opened.
Headlines that appeared after the financial statements would give the public the impression that the airline is failing, but reality isn’t that clear-cut.
Few airlines turn a profit in the first year of operation, so Akasa Air isn’t quite in trouble. But looking at the bigger picture helps put things in perspective.
Setting up an airline, securing routes, and securing aircraft is expensive. This is doubly true for Akasa Air, as it has been expanding its routes at an astonishing rate. The fleet is also growing to keep up with the demand and expansion pace, with the airline looking to receive a new Boeing 737 MAX every two weeks.
Competition amongst airlines in India is skyrocketing, but the fledgling airline has been able to overtake some of its more stable competitors and recently surpassed SpiceJet in terms of market share. Akasa currently holds 4.9% to SpiceJet’s 4.4%.
The airline will soon take delivery of its 20th aircraft, making it eligible to expand into the international market.
01/08/2023 Trevin Christian Casinader/Simple Flying
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