Akasa Air raises ₹450 crore, seeks another ₹700-800 crore as losses mount

Akasa Air has raised ₹450 crore from existing investors and is looking to raise another ₹700-800 crore from a new investor by the end of this year or early next year, sources told CNBC-TV18. The fresh funding would take the airline’s cumulative equity funding since inception to more than ₹2,000 crore.

The airline is also generating cash through sale-and-leaseback transactions, which are estimated to yield close to ₹60 crore per aircraft. Based on this estimate, proceeds from 14 aircraft delivered in 2026 could amount to at least ₹800 crore.

Akasa has also raised about ₹740 crore through the government’s Emergency Credit Line Guarantee Scheme (ECLGS).

However, the airline’s rapid expansion has been accompanied by a sharp rise in losses. Its revenue has grown from around ₹770 crore in FY23 to ₹6,168 crore in FY26, while its fleet has expanded to 45 aircraft. Over the same period, net losses have increased from around ₹740 crore to more than ₹2,700 crore, nearly four times the FY23 level.

Higher fuel costs, lower aircraft utilisation due to geopolitical disruptions and payments for new aircraft deliveries are adding to Akasa’s cash requirements, sources said. Lower aircraft utilisation is also affecting the airline’s operational efficiency.

Akasa is targeting a fleet of 50 aircraft by March 2027, according to sources. The planned expansion comes as the airline

continues to report substantial losses, raising questions about how it will balance its growth ambitions with its funding needs.

Akasa Air has not confirmed the funding figures to CNBC-TV18. In a statement, the airline described itself as well capitalised, with a clear long-term growth strategy. It also said it was grateful for the continued support of investors, who remain bullish on its growth.