Akasa Air Funds Growth
Akasa Air Plans ₹1,050 Crore Fundraise via Equity and Debt Amid Rising Jet Fuel Costs
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Key Points
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Akasa previously raised funds in June of the previous year, with discussions centered on a round affected by the Iran‑US conflict and the resulting shift in market conditions.
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SpiceJet is separately pursuing up to ₹5 billion in financing under the government credit program aimed at airlines hit by the geopolitical tensions.
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SNV Aviation’s shareholder lineup for Akasa includes founder Vinay Dube, the family of the late Rakesh Jhunjhunwala, and a private equity fund managed by 360 ONE Asset Management, among others.
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A separate coverage notes Akasa posted a 37% rise in operating revenue for FY2026, supported by a 30% expansion in capacity, and plans to grow capacity by a further 30% in the current year.
Akasa Air is planning to raise ₹1,050 crore — roughly $110 million — through a mix of equity and debt, according to NDTV Profit. The push comes as the Iran war drives up jet fuel costs, which now eat up about 40% of the airline's operating expenses.
The fundraise splits into about ₹800 crore in equity from existing and new investors, and at least ₹250 crore in debt through a government-backed credit line for airlines hurt by the conflict, Moneycontrol reported. Talks are ongoing and terms could still change.
How Akasa Plans to Split the ₹1,050 Crore
On the equity side, existing shareholders are expected to chip in about ₹500 crore. The rest will come from one Asian investor and one American investor, according to NDTV Profit. The airline is India's youngest and operates as a low-cost carrier.
The debt portion — at least ₹250 crore — would come from state-run banks under a government credit program aimed at carriers affected by the geopolitical tensions. Lapaas Voice noted the airline has flagged this credit line as a key funding channel.
Iran War Sends Jet Fuel Costs Soaring for Indian Carriers
The Iran conflict has disrupted flight routes and pushed up global oil prices. For airlines like Akasa, that means higher fuel bills on every flight. Fuel already accounts for around 40% of Akasa's operating costs, making it the single biggest expense, per NDTV Profit.
Akasa is not alone. SpiceJet is separately chasing up to ₹500 crore in financing under the same government credit program, according to Streamline Feed. Air India is also dealing with the same sector-wide pressure from rising fuel prices.
Who Owns Akasa and How Fast It Is Growing
Akasa Air is operated by SNV Aviation. Its shareholders include founder Vinay Dube, the family of the late investor Rakesh Jhunjhunwala, and a private equity fund run by 360 ONE Asset Management, per NDTV Profit. The airline has built a reputation as one of India's most resilient low-cost carriers.
Despite the fuel crunch, Akasa posted a 37% rise in operating revenue for FY2026, backed by a 30% jump in capacity, according to Economic Times Travel. The airline plans to grow capacity by another 30% in the current year — a sign it intends to keep expanding even through the turbulence.
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