Akasa Air Targets 226 Aircraft by 2032, Plans IPO in 2-4 Years

Akasa Air plans to operate 226 aircraft by 2032 and launch an initial public offering within two to four years, the budget carrier said. The airline, backed by the estate of late investor Rakesh Jhunjhunwala and founded by former Jet Airways CEO Vinay Dube, currently flies 28 planes to 22 destinations.

The fleet target represents a nearly eightfold increase from its current size. Akasa has firm orders for 76 Boeing 737 MAX jets and holds options for additional aircraft, the company said. An IPO in the next few years would give the carrier access to public equity markets to fund further expansion and infrastructure investment.

Indian airlines have grown rapidly since the pandemic as domestic passenger traffic rebounded. Akasa entered the market in August 2022 and has added routes steadily. The carrier said it aims to become one of the top three domestic airlines by the end of the decade. That ambition comes after Go First collapsed in 2023 and SpiceJet has shrunk its operations, leaving room for new capacity.

IndiGo, India's largest carrier by market share, listed about two decades after its founding. Akasa's IPO timeline is far shorter. The faster pace reflects investor appetite for aviation exposure after a period of consolidation, analysts said. The late Rakesh Jhunjhunwala was Akasa's largest single shareholder. His estate continues to support the airline. A successful listing would validate his bet on Indian aviation, a sector he often called underpenetrated.

The airline faces the same cost pressures as its peers. Fuel price volatility and high airport charges have constrained growth. A shortage of trained pilots has also grounded some regional routes. Akasa said it remains profitable at an operating level, though it has not disclosed full-year earnings. The fleet plan signals confidence that India's aviation market, still low in per-capita usage, has room for expansion.

Akasa's expansion plans could pressure rivals to accelerate their own fleet additions. IndiGo has over 1,000 aircraft on order. Air India, under Tata Group, is also expanding. Competition for airport slots and pilots is likely to intensify. Aircraft lessors and manufacturers such as Boeing stand to benefit from the order pipeline.

The airline plans to take delivery of additional 737 MAX jets through 2025 and 2026. It has not set a specific date for the IPO, saying only that it would come in two to four years.