Akasa Air Plans IPO in 2-4 Years Amid Growth Strategy

Akasa Air's IPO Timeline and Growth Plans

Akasa Air is preparing to launch its Initial Public Offering (IPO) within the next three to four years, as stated by the airline's Chief Financial Officer (CFO). Ankur Goel emphasized that the airline's focus is on enhancing its financial health and expanding operations before proceeding with the IPO. He noted that the exact timing will hinge on achieving specific operational and financial benchmarks.

"The timeline is set for two to four years, with key milestones related to EBITDA positivity, cash flow generation, and overall profitability influencing our final decision," Goel remarked. He assured that the IPO is a certainty, stating, "It's not a matter of if, but when. Our goal is to build an airline that delivers real value, not just to facilitate an IPO. We are well-capitalized for this journey."

Discussing future growth, Goel projected that Akasa Air aims to sustain a growth rate of 30-40% over the next five years, despite facing challenges from the ongoing West Asia conflict and rising aviation turbine fuel (ATF) prices. The airline also plans to boost its passenger handling capacity by over 30% year-on-year by the financial year 2027 (FY27).

In FY26, Akasa Air reported a reduced net loss compared to FY25, even with a 30% increase in capacity. Goel highlighted that the airline achieved EBITDA positivity for six months from September to March, reinforcing confidence in its profitability trajectory. However, Akasa Air's standalone net loss for FY25 increased by 18.7% year-on-year, reaching approximately Rs 1,983 crore, primarily due to escalating employee costs, aircraft maintenance, airport fees, and a significant rise in foreign exchange expenses.