Akasa Air’s losses increased to INR 1,670.06 Crore in the year ended March 20, 2024. However, the airline’s total revenue jumped to INR3,144.38 Crore during the same period.
Tofler’s business intelligence platform, Tofler, accessed data from the airline that has been flying since over two years. The airline had a net loss after tax of INR 744.53 crores in 2022-2023. Ankur Goel is the Chief Financial Officer at Akasa Air. He said that cash burn was at an operational level and Akasa Air had a positive net cash flow.
“The foundational years of any airline are dedicated to investing in its people, fleet, training, operating infrastructure, and network, and hence no airline registers P&L profits in these years,” he said in a statement to PTI.
The carrier operated more than 110 daily flights and had a fleet size of 24 planes by the end of 2024. On a separate basis, the company has achieved a total profit of INR 31443.83 million in FY 2024 as compared to a previous year total income INR 7,778.48 millions.
SNV Aviation Pvt Ltd reported a Net Loss of INR 16,700.66 Million for FY 2024, compared to INR 7,444.27 Million for the previous fiscal year.
SNV Aviation is Akasa Air’s parent company. In 2023-24, Akasa Air’s total expenses grew to INR 4,814.44 billion, compared to INR 1,522.27 billion in the same period last year. Goel said that airlines usually take a few more years to stabilise their finances before breaking even.
He also said that the airline’s seat capacity tripled between 2023-24. This resulted in a 10% increase in Revenue per Available Kilometre (RASK).
The filing states that “As of March 31, 2024, the Company has accumulated losses of INR 24,444.66 Million which has resulted into a negative networth of INR 20,097.71 Million and current liabilities of company exceed its current assets INR 2,107.67 Million.”
In the statement Goel stated that among other things, our strategy for achieving profitability includes improved yield, lower costs and higher capacity, along with international expansion.
He added:
“Our FY25 will be better that FY24 and our performance in FY26 will be better then FY25.”
Akasa Air will begin operations on August 7, 2020, and start international services on the 28th of March 2024.
