Akasa Air saw its loss widen to Rs 1,670.06 crore in the financial year ended March 2024 even as the airline's total income jumped to Rs 3,144.38 crore during the same period.
The airline, which has been flying for over two years, had a loss after tax of Rs 744.53 crore in 2022-23, according to data accessed by business intelligence platform Tofler.
Cash burn is at an operating level and Akasa Air is net cash positive, the airline's Chief Financial Officer Ankur Goel said and added that its performance will be better this fiscal.
"The foundational years of any airline are dedicated to investing in its people, fleet, training, operating infrastructure, and network, and hence no airline registers P&L profits in these years," he said in a statement to PTI.
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At the end of March 2024, the carrier had a fleet of 24 planes and operated more than 110 flights daily.
"On a standalone basis, the company achieved a total income of Rs 31,443.83 million for FY 2024 against previous year's total income of Rs 7,778.48 million.
"The company reported a net loss of Rs 16,700.66 million for FY 2024 against a net loss of Rs 7,444.27 million for the previous year," SNV Aviation Pvt Ltd said in a filing to the corporate affairs ministry.
SNV Aviation is the parent of Akasa Air.
During 2023-24, the carrier's total expenditure climbed to Rs 4,814.44 crore as against Rs 1,522.27 crore in the same period a year ago.
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According to Goel, airlines typically take a few years to stabilise before breaking even.
He also said the airline's capacity tripled in 2023-24, resulting in a 10 per cent increase in Revenue per Available Seat Kilometre (RASK).
"As at 31 March 2024, the company has accumulated losses aggregated to Rs 24,444.66 million which has resulted in negative net worth of Rs 20,097.71 million and current liabilities of the company exceed its current assets by Rs 2,107.67 million," as per the filing.
In the statement, Goel said that improved yield, reduced cost and higher capacity coupled with international expansion, among other steps, are key aspects of our strategy to achieve profitability.
"Our FY25 performance will be better than FY24 and our FY26 performance will be better than FY25," he added.
Akasa Air commenced operations on August 7, 2022, and started international services on March 28, 2024.
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