Are Akasa Air and Air India Express Facing Escalating Losses?
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Synopsis
The recent financial reports reveal troubling losses for Akasa Air and Air India Express, raising concerns about the sustainability of these airlines in a competitive market. As the industry grapples with financial challenges, will the government intervene to support this crucial sector?
Key Takeaways
- Akasa Air faced increased losses, totaling Rs 19,86.25 crore.
- Air India Express reported a steep loss of Rs 58,32.37 crore.
- IndiGo emerged as a profitable airline with Rs 72,53.3 crore.
- The aviation industry remains challenged, with some airlines improving while others do not.
- The government is not expected to intervene significantly due to deregulation.
New Delhi, Dec 11 (NationPress) The financial strain on Akasa Air has intensified in the latest fiscal year, with the airline disclosing a staggering net loss of Rs 19,86.25 crore for the financial year 2024-25 (FY25), a significant increase from the Rs 16,69.59 crore loss reported in the prior year, as revealed in a statement to Parliament on Thursday.
In a written response to the Lok Sabha, Minister of State for Civil Aviation Murlidhar Mohol indicated that Air India Express also experienced a notable rise in losses during the same timeframe. This airline recorded a loss of Rs 58,32.37 crore in FY 2024-25, a sharp increase from its Rs 1,63.12 crore loss in FY 2023-24.
This represents a significant downturn compared to the small profit of Rs 1,16.32 crore in FY 2022-23. The data illustrates that numerous Indian airlines continue to struggle financially, although some have seen improvements.
IndiGo stood out as the leading performer, achieving a profit of Rs 72,53.3 crore in FY 2024-25, following a profit of Rs 81,67.49 crore the previous year.
Despite this, the airline's market capitalization has diminished significantly.
Air India has also successfully reduced its losses to Rs 39,75.75 crore, showing improvement from a Rs 44,44.1 crore loss in FY 2023-24.
The minister noted that while financial results for FY 2025-26 are not yet available, data from the past three years indicates a varied performance among carriers.
Other airlines, including Alliance Air, Fly91, and Quikjet Cargo, also reported losses. In contrast, Blue Dart and Star Air were among the few that reported profits.
Addressing concerns regarding domestic passenger traffic, Mohol stated that airlines have provided year-on-year and month-by-month passenger data from FY 2022-23 to FY 2025-26, with details available in official annexures.
However, he did not indicate any substantial year-on-year decline in passenger numbers during the session.
Regarding potential government measures to alleviate airline losses or support the sector, the minister clarified that the aviation industry has been deregulated since 1994.
He emphasized that operational and financial decisions, including capital raising or debt restructuring, rest with individual airlines based on their commercial requirements.
Point of View
It's essential to recognize the ongoing struggles faced by airlines like Akasa Air and Air India Express. With significant losses reported, the aviation industry is at a crossroads. While some carriers are improving, the overall picture reflects persistent challenges that require attention. The deregulated nature of the industry places the financial burden on individual airlines, making it crucial for stakeholders to innovate for a sustainable future.
NationPress
11/12/2025
Frequently Asked Questions
What are the reported losses for Akasa Air?
Akasa Air reported a net loss of Rs 19,86.25 crore in FY 2024-25, an increase from Rs 16,69.59 crore in the previous fiscal year.
How did Air India Express perform financially?
Air India Express recorded a loss of Rs 58,32.37 crore in FY 2024-25, a significant rise from the Rs 1,63.12 crore loss in FY 2023-24.
Which airline reported a profit?
IndiGo was the only airline to post a profit, achieving Rs 72,53.3 crore in FY 2024-25.
What measures is the government considering to support airlines?
The government has clarified that the aviation industry is deregulated, and operational decisions rest with the airlines themselves.
How are passenger numbers affected in this situation?
While concerns about domestic passenger traffic exist, there has been no significant year-on-year decline reported.
