Akasa Air, the newest airline in India, has reported a loss of Rs 602 crore for the financial year 2022-23. The airline started operations in August 2022 and has been facing losses due to the high cost of fuel and other operational expenses.
The airline's CEO, Vinay Dube, said that the losses were expected as the airline was still in its early stages of operations. He said that Akasa Air is confident of turning profitable in the next few years.
The airline has also announced plans to expand its fleet to 100 aircraft by 2025. This will help the airline to reduce its costs and improve its profitability.
Akasa Air is the first airline in India to be backed by a private equity firm. The airline is backed by the Rakesh Jhunjhunwala-led fund, Air One Capital, and the Singapore-based fund, Temasek Holdings.
The airline's losses are a concern, but they are not unexpected. The airline is still in its early stages of operations and is facing some challenges. However, the airline is confident of turning profitable in the next few years.
Here are some of the reasons why Akasa Air is facing losses:
- The high cost of fuel: The cost of fuel is a major expense for airlines. The high cost of fuel has been a major challenge for Akasa Air.
- Other operational expenses: Akasa Air is also facing other operational expenses, such as ground handling charges and airport fees. These expenses have also been a challenge for the airline.
- The airline is still in its early stages of operations: Akasa Air is still in its early stages of operations. This means that the airline is not yet generating enough revenue to cover its costs.
Despite these challenges, Akasa Air is confident of turning profitable in the next few years. The airline has a strong management team and a clear strategy. The airline is also backed by some of the biggest investors in the world. These factors give Akasa Air a good chance of success.
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