Akasa Air IPO plans: CFO cites 2–4-year window linked to EBITDA and profitability targets

Akasa Air expected its initial share sale within the next two to four years. Chief Financial Officer Ankur Goel said the timing depended on hitting key business milestones. Goel added that the plan was firm, despite wider aviation cost pressures. The airline industry faced higher fuel prices, which raised operating costs for carriers.

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At a briefing in the national capital, Goel linked the IPO schedule to performance goals. These included being EBITDA positive, generating cash flow, and reaching profitability. The airline said it was well-capitalised as it worked towards these targets. Goel said the market should view the IPO as inevitable, but not immediate.

Akasa Air IPO timeline and milestones

Responding to questions, Goel said the IPO window was tied to execution. "IPO will happen for us, it is not a question of if, it is a question of when, we are not creating an airline to do an IPO, we are creating an airline that really creates value...,\" Goel said. The airline was EBITDA positive during the September 2025 - March 2026 period.

Goel said several measures were improving year-on-year. \"The fact that this year our losses were lower than the losses in the last year tells you the story, that each of the metrics that we are speaking about, whether it is the metric of revenue, unit revenues, whether it is the metric of unit cost, whether it is the metric of EBITDA, whether it is the metric of cash burn, all these metrics continue to improve in the manner that we predict,\" Goel said. EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation.

Akasa Air capacity growth and network plans

Akasa Air began operations in August 2022 and has expanded steadily since then. The airline currently served 34 destinations, including 7 international cities. Goel said capacity was set to rise by 30 per cent in this financial year. Over the next 4-5 years, Akasa Air expected capacity growth of about 30-40 per cent.

The airline said it would strengthen domestic and international routes this fiscal. It planned to use opportunities linked to Navi Mumbai International Airport and Noida International Airport. Goel said the next stage of international expansion was planned for Southeast Asia. The airline also said it remained cautiously optimistic amid near-term challenges.

Akasa Air fares, load factor and demand

Asked about ticket prices, Goel referred to strong occupancy levels. Goel said that with a load factor near 90 per cent, fares did not appear unusually high. Goel said pricing reflected demand conditions in the market. \"Fares are dynamic. Fares will go up and will come down. It is not a yes or no. The fares are dynamic, and the algorithm will ensure that fares will align with the prevailing demand in the market,\" Goel noted.

Goel said the airline faced short-term headwinds, including pressures tied to the West Asia conflict. Still, Goel said the airline had not changed its longer-term roadmap. \"Long-term plans have not gone through any rethink... plans remain on firm footing,\" Goel said. Higher fuel prices remained a key factor affecting airline cost structures.

Akasa Air financial performance and fleet expansion

Akasa Air reported higher operating revenue and capacity for the fiscal ended March 2026. Operating revenue rose 37 per cent, while capacity measured by Available Seat Kilometres ASKs increased 30 per cent. Stage adjusted Revenue per Available Seat Kilometre RASK improved 10 per cent. The airline also said Cost per Available Seat Kilometre CASK fell 4 per cent year-on-year.

The airline said EBITDAR margins improved by staggering 60 per cent. It linked the change to scale, operational efficiency, and disciplined commercial execution. Goel described FY26 as a watershed year. The carrier also said it absorbed major industry cost pressures during the same period, even as key margins improved.

In 2026, Akasa Air added eight aircraft, taking the fleet to 39 planes. The nearly four-year-old carrier said it aimed to have 226 aircraft by 2032. Akasa Air has placed an order for 226 Boeing 737 MAX aircraft. The airline said the remaining 187 planes were due for delivery over the next six years.

During the last fiscal, the carrier completed a funding round. It also received additional investment from the Jhunjhunwala family and associates. Akasa Air said the funding supported expansion plans across routes and fleet. With IPO plans tied to milestones, the airline said it would keep focusing on profitability, cash flow, and operational progress.

With inputs from PTI