Akasa Air eyes China, Africa routes but fleet shortage clips expansion plans

New Delhi: India’s youngest low-cost carrier Akasa Air has ambitious plans to expand its international operations, including flights to China, but Boeing’s aircraft supply delays are holding it back.

The airline, which is owned by SNV Aviation and started flying in August 2022, has bilateral rights to at least seven new international destinations, including Uzbekistan, Tashkent, Hanoi, Sri Lanka, Maldives, Indonesia and Singapore, and is planning further routes to China and Africa (Nairobi). But with just 30 planes in its fleet and Boeing’s deliveries behind schedule, the carrier finds itself in a holding pattern.

“We have bilateral agreements. We also expect to be ready in time to deploy the aircraft and grow profitably internationally,” said Praveen Iyer, co-founder and chief commercial officer of Akasa. MintFollowing the media roundtable. “There will be an international increase as more planes arrive.”

The private airline, which has a 5 percent market share, stopped sharing fleet guidance following delays in aircraft supply. The airline expects aircraft deliveries to return to normal by mid-2026 and is putting hiring plans in place accordingly.

For now, Akasa’s international network remains limited to six routes; five in West Asia (Doha, Abu Dhabi, Jeddah, Riyadh and Kuwait) and one in Phuket (Thailand). Flights to Sharjah are expected soon. The airline also serves 24 domestic destinations, with its home bases being Mumbai, Bengaluru and Delhi.

Akasa has committed to 226 aircraft under a full sale and leaseback agreement, with deliveries spread over the next seven years until 2032. The carrier last took delivery in June-July 2025. The airline avoided costly short-term fixes such as wet or damp leases.

Under a sale and leaseback agreement, air carriers acquire aircraft at a discount, sell them at cost to lessors, and lease them back immediately. While a wet lease provides crew, maintenance and insurance for the aircraft, in a wet lease the lessee must provide his or her own cabin crew.

Akasa plans to purchase 196 aircraft in 86 months, or 2 aircraft per month; this is exactly half of what larger players like IndiGo and Air India charge (4 per month).

To ease delivery times, Akasa is counting on Boeing to increase production from 38 aircraft per month to 42 aircraft, recently approved by the US Federal Aviation Administration (FAA) from October 2025. Iyer said the airline expects planes to arrive faster as Boeing ramps up production.

“One to two month delays in delivery will not make any difference,” he said, noting that Akasa targets any market within a 5.5-hour flight radius from India.

The fleet restriction comes at a time when Akasa is seeking to hedge against foreign exchange volatility due to its sale and leaseback model. Aircraft transactions are denominated in US dollars, and the airline hopes to offset this risk with greater dollar earnings from overseas operations.

Akasa wants to be an internationally focused carrier rather than a predominantly domestically focused carrier. Its internal forecasts (in a filing to the Ministry of Corporate Affairs) target an almost tripling of international capacity share from 13% to around 40% over the next few years.

“Beyond international expansion, the acquisition of the aircraft is also important. The airline has seen delivery delays from Boeing and increased leases, among other factors. As deliveries occur, more fuel-efficient aircraft will come into play. Operating costs will decrease,” said Elara Capital analyst Gagan Dixit.

Akasa reported the following revenue for fiscal year 2025: ₹4,582.72 crore and losses ₹1,983.42 crore, reflecting the high cost structure and competitive pressure in the Indian aviation market.

The airline has recently come to the fore ₹1,200 crore (about $125 million) in new funding from new investors including Premji Invest, 360 One Asset and Claypond Capital, and additional capital from its founding supporters, the Jhunjhunwala family. The funds will go towards fleet expansion, technology upgrades and network growth.