Goa-based regional carrier FLY91 is looking to raise ₹150 crore to expand its fleet and network. The privately held airline plans to increase its current fleet of six ATR-72 aircraft, aiming for long-term growth despite the capital-heavy nature of the Indian aviation industry.
FLY91, a Goa-based regional airline, is looking to raise ₹150 crore to drive its next phase of expansion. The carrier, which began commercial services in March 2024, plans to use this capital to increase its fleet size and add more destinations to its network. Currently, the company operates six ATR-72 aircraft and is focusing on strengthening connectivity from its primary hubs in Goa and Hyderabad.
It is important for market observers to note that FLY91 is a privately held company. It is not listed on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). This entity is separate from other aviation companies that are publicly traded on Indian stock exchanges.
The airline has set an ambitious long-term goal to operate a fleet of 50 to 60 aircraft across 50 cities within the next five to six years. Chairman Harsha Raghavan, who also leads the early investor Convergent Finance, has emphasized that the company remains focused on maintaining operational discipline and careful spending as it scales its operations.
Financial performance in the aviation sector is often tied to the stage of expansion. While FLY91 reported a profitable quarter in FY26, the management expects to incur losses in FY27. This is typical for airlines in an aggressive investment phase, where costs related to new routes, aircraft leases, and infrastructure development are high. The company is currently targeting cash break-even by the end of FY27, with a goal to achieve full profitability in subsequent years.
The regional aviation market in India is known for being highly capital-intensive and competitive. Historically, many regional carriers have struggled to survive due to the high costs of aircraft induction, manpower, and station development. FLY91 faces significant industry challenges, including exposure to volatile fuel prices and global aviation supply chain constraints, which can impact the timely delivery and maintenance of aircraft. To support this growth, the company has recently strengthened its senior leadership team by appointing Krishnan Balakrishnan as President and Chief Operating Officer, and Jitendra Kushwah as Chief Financial Officer.
The key focus for the company will be its ability to manage these high upfront expansion costs while keeping its operations efficient. Investors and observers will likely watch how the airline balances its rapid fleet expansion goals with the reality of the challenging and cost-sensitive regional aviation sector.