Akasa Air has obtained a ₹740 crore working capital loan from IndusInd Bank to support its daily business operations. This funding, backed by the government's Emergency Credit Line Guarantee Scheme, provides necessary liquidity as the airline expands its fleet to 40 aircraft. While the company is not publicly traded, it remains focused on a potential initial public offering within the next two to four years.
Akasa Air, the Mumbai-based private carrier operating under SNV Aviation Pvt. Ltd., has secured a ₹740 crore working capital loan from IndusInd Bank. This financing is being facilitated through the government’s Emergency Credit Line Guarantee Scheme (ECLGS), which provides liquidity support to critical sectors of the economy.
The airline intends to use these funds to manage day-to-day business operations and maintain financial flexibility. This development is part of a broader capital management strategy as the carrier continues to scale its operations. By the latest count, the airline operates a fleet of 40 Boeing aircraft and serves 36 destinations across its network.
Supporting Expansion Plans
The airline is in a phase of rapid network and fleet expansion. As of the current fiscal year, the company has prioritized scaling its capacity to meet demand. Financial reports for the fiscal year 2025–26 indicated a 37% growth in revenue compared to the previous period, reflecting an active expansion phase. The carrier also reported improved EBITDAR margins of 60%, showing better operational control as the scale of business increases.
To facilitate this growth and manage the costs associated with adding new routes and aircraft, the company previously increased its borrowing limit to ₹3,950 crore in June 2026. This move helps the airline utilize government-backed credit schemes to fund its requirements without relying solely on equity or internal cash generation, which can be volatile in the early stages of airline operations.
Managing Operational Pressures
Despite the growth in revenue, the aviation industry remains sensitive to external factors. The management has highlighted that volatility in jet fuel prices and foreign exchange rates—often driven by geopolitical conflicts, particularly in West Asia—remains a persistent risk. These costs can pressure operating margins and necessitate careful cash management.
Because the airline is still in a high-growth phase, it faces the risk of requiring consistent external capital if market conditions become unfavorable. Competition in the Indian aviation space also remains intense, which can limit the ability of carriers to pass on increased fuel costs to passengers.
Looking ahead, the company continues to work toward its long-term objective of launching an Initial Public Offering (IPO) within the next two to four years. For those following the sector, the key monitorables will be the airline's ability to maintain its margin performance while balancing the capital-intensive nature of its fleet expansion. As the company is currently private and not listed on stock exchanges, observers will track official company filings and industry performance data to gauge the health of its operations and progress toward its IPO roadmap.