Akasa Air Wants Over 3x More Money; Here's Why

Akasa Air has more than tripled its borrowing limit to ₹3,950 crore from ₹1,200 crore, as the airline seeks additional funding to support its rapid expansion and tap into a government-backed credit support programme for the aviation sector, a Mint report said.

The revised borrowing limit was approved by shareholders of SNV Aviation, Akasa Air's holding company, during a special meeting held in May. The move follows an earlier increase in the borrowing ceiling in March 2025 and comes as the airline continues to expand its fleet and network, as per the report.

In a regulatory filing, Akasa said the higher borrowing capacity was necessary to meet the company's growing financial requirements and to facilitate access to the government's proposed Emergency Credit Line Guarantee Scheme (ECLGS) for airlines.

"Considering the growing operations and resultant increase in the financial requirement of the company in the near future and the proposed availment of the Emergency Credit Line Guarantee Scheme (ECLGS) that is likely to be provided by the government to airlines, it is proposed that a superseding resolution be passed," the airline said in the filing.

Funding Expansion and Fleet Growth

According to the company, the additional borrowing headroom of ₹2,750 crore could be raised through multiple financing channels, including sale-and-leaseback arrangements for aircraft, credit-backed guarantees, invoice discounting facilities and government-supported lending programmes.

Akasa said access to the proposed ECLGS facility could also enable the airline to secure sovereign-backed funding, helping reduce financing costs.

The government announced a ₹5,000 crore support package under the ECLGS framework in May to help airlines navigate elevated operating costs arising from high aviation fuel prices and disruptions linked to geopolitical tensions in West Asia.

The scheme is designed to address short-term liquidity pressures and forms part of the broader ₹2.5 trillion ECLGS programme approved by the Union Cabinet.

Akasa currently operates a fleet of 38 aircraft, including seven additions so far this year, and is awaiting deliveries from its order of 226 Boeing aircraft.

Financial Performance

For FY25, Akasa reported revenue of ₹4,582.72 crore, while posting a loss of ₹1,983.4 crore. Despite the losses, the airline has steadily expanded its market presence and currently holds a 5.8% share of India's domestic aviation market.

As of June 30, 2025, members and trusts of the late investor Rakesh Jhunjhunwala's family collectively owned 44.4% of the airline, while founder and Chief Executive Officer Vinay Dube held a 16.1% stake.

The increase in borrowing capacity underscores Akasa's confidence in its long-term growth trajectory as it prepares for fleet expansion and intensifying competition in India's fast-growing aviation market.