Akasa Air's loss widened to Rs 1,670.06 crore in FY 2024 while the total income of the airline surged to Rs 3,144.38 crore during the same period.
The airline, which has been operational for more than two years, had a loss after tax of Rs 744.53 crore in 2022-23, according to data accessed by Tofler, a business intelligence platform.
"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.
The carrier had at the end of March 2024 a fleet of 24 planes and more than 110 flights being operated each day.
"In standalone results, the company has achieved total income at Rs 31,443.83 million for FY 2024 compared with Rs 7,778.48 million from previous year.
"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.
In 2023-24, the total expenditure of the carrier rose to Rs 4,814.44 crore against Rs 1,522.27 crore in the same period last year.
The break-even time for airlines takes almost two or three years, Goel said.
The capacity of the airline trebled in 2023-24, and it brought a 10 per cent jump in Revenue per Available Seat Kilometre, he said.
"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," the filing states.
The statement said, With the international expansion beside some other steps such as higher yield, lower cost and a capacity to make more of productivity is what constitutes our step-by-step plan towards attaining profitability.
"Our FY25 would be better than FY24 and FY26 better than FY25," Goel said.
Akasa Air has commenced operations on 07 Aug 2022 while beginning its international operation service from March 28 2024.
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