Akasa Air IPO Likely in Next 2-4 Years as Airline Targets Profitability Milestones

Akasa Air plans to go public within the next two to four years, with the timing of the proposed initial public offering (IPO) dependent on achieving key profitability and cash flow milestones, Chief Financial Officer Ankur Goel said on Tuesday.

Responding to queries about the IPO at a briefing in New Delhi, Goel said the timeline would depend on achieving various milestones, including sustained EBITDA positivity, positive cash flows and profitability. He described the proposed share sale as "not a question of if, but a question of when".

The comments come after the airline achieved EBITDA positivity during the September 2025-March 2026 period, a significant milestone for the carrier. Goel said the airline is "not creating an airline to do an IPO" but is focused on building a business that creates long-term value. He also said the airline remains well-capitalised.

Goel said the airline's net losses narrowed in FY26 compared with the previous financial year despite a 30 per cent increase in capacity. Unit revenue rose around 10 per cent during the year, while unit costs declined 4 per cent and EBITDA margins improved 60 per cent.

Operating revenue increased 37 per cent in FY26, while capacity measured in available seat kilometres (ASKs) rose 30 per cent. According to Goel, milestones such as sustained EBITDA positivity, positive cash flows and overall profitability will determine the timing of the IPO.

The airline currently operates a fleet of 39 aircraft and flies to 34 destinations, including seven international cities. It aims to expand its fleet to 226 aircraft by 2032.

The carrier currently operates a fleet of 39 aircraft and flies to 34 destinations, including seven international cities. It aims to expand the fleet to 226 aircraft by 2032. Looking ahead, the company expects capacity to grow by around 30 per cent in the current financial year, with annual growth projected at 30-40 per cent over the next four to five years.

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So far in 2026, the carrier has inducted eight aircraft, taking its fleet strength to 39. Of the 226 Boeing 737 MAX aircraft on order, the remaining 187 are scheduled for delivery over the next six years. The airline, backed by investors including the Jhunjhunwala family, currently serves 34 destinations, including seven international cities.

Source:

PTI