Akasa Air had ordered a total of 226 Boeing 737 MAX family aircraft, all of which are expected to be delivered by 2032, which comes out to 28 aircraft per year on average. (Credit: akasaair.com)Akasa Air expects its aircraft and seat capacity to grow at a compounded annual growth rate (CAGR) of 25-30 per cent over the over the next seven years as the airline expects to have a 226-aircraft fleet by 2032, up from its current strength of 30 Boeing 737 MAX family aircraft, according to the airline’s chief financial officer Ankur Goel. With robust growth in capacity and the airline’s “steadfast focus on cost leadership”, the three-year-old carrier is well on its path to profitability, Goel told reporters on Tuesday.The airline—India’s youngest major carrier—had ordered a total of 226 Boeing 737 MAX family aircraft, all of which are expected to be delivered by 2032, which comes out to 28 aircraft per year on average. Goel, however, said that the aircraft deliveries will vary over the years, with fewer deliveries likely over the next two-three years, after which they are expected to pick up significantly.Goel added that Akasa Air is in regular touch with Boeing and all signals are that the aircraft are expected to be delivered sooner than earlier anticipated, which gives the airline confidence that its aircraft order will be fulfilled by 2032. Boeing has had issues with aircraft deliveries due to various crises and regulatory oversight, but Goel said that most of Boeing’s issues now seem “to be behind them”.The airline currently has 23 Boeing 737-8 aircraft, which have 185-189 seats apiece, and seven 737-8-200 jets that can seat 197 passengers. Akasa Air also has some 737-10 aircraft—which will have 227 seats—on order, and their deliveries are likely to start from 2027.Akasa Air’s revenue in 2024-25 (FY25) grew 49 per cent year-on-year, while capacity in terms of available seat kilometres (ASK) grew at a 48 per cent, Goel said, without giving specific numbers. In FY26, the airline expects its capacity in terms of ASKs to growth by 30 per cent. The airline’s stage-adjusted revenue per ASK (RASK) improved by 13 per cent in FY25, while cost per ASK (CASK) was down 8 per cent, leading to unit margins improving by over 20 per cent year-on-year. Operating margin improved by half on a year-on-year basis.While the airline is still not profitable, Goel said that the trajectory of revenue growth and cost reduction on a per unit basis means that it will be operationally profitable “very soon”, but refrained from giving any specific timeline. He said that currently, the rapid capacity growth and the consequent cost increase at the company level is offsetting the improvement in revenue as well as the unit cost levels. He expects the equation to change soon as revenue and cost dynamics continue to improve significantly.“Akasa Air’s financial performance reflects the strength of our business model and the disciplined execution of our strategy. We are optimistic about the future and are looking forward to building on the momentum of our robust financial and commercial performance in the years ahead. Akasa Air is on a deterministic path towards building the industry’s best cost structure, and we are confident that we will continue to set new standards driven by our efficient planning, strategic expansion and promising potential of the nation’s economy,” Goel said.Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More© The Indian Express Pvt LtdTags:Akasa Air