Mumbai, India: Akasa Air is seeking to raise ₹1,050 crore (US$110 million) through a combination of equity and debt financing as the Mumbai-based carrier looks to strengthen its finances amid higher operating costs triggered by the recent Iran conflict. The fundraising comes as soaring aviation fuel prices, flight disruptions and longer routings have added financial pressure on airlines while Akasa continues its aggressive expansion strategy.
Akasa plans to raise approximately ₹800 crore (US$84 million) through equity and at least ₹250 crore (US$26 million) through debt. The airline has approached both its existing shareholders and two new investors for the equity portion, while simultaneously holding discussions with state-run banks to secure debt financing under the Indian government’s special credit line introduced to support airlines affected by the Iran conflict. The discussions remain private and the fundraising structure has not yet been finalized.
For the equity raise, existing shareholders are expected to contribute around ₹500 crore (US$52.4 million), while the remaining ₹300 crore (US$31.4 million) is expected to come from one Asian investor and one American investor, according to the report.
Akasa Air began operations in August 2022 under SNV Aviation Pvt. Ltd. The airline had already raised capital from investors in June 2025, but market conditions deteriorated following the conflict between Iran and the United States. The war disrupted international air travel, forced airlines to reroute flights around restricted airspace and drove up aviation turbine fuel (ATF) prices. Fuel typically accounts for around 40% of an airline’s operating costs, significantly increasing financial pressure across the industry.
The airline’s fundraising reflects wider challenges confronting both Indian and global carriers. Tata Group-owned Air India recently reported its largest-ever annual loss and is seeking additional funding from its shareholders, including Singapore Airlines.
Responding to reports of the fundraising, Akasa Air did not directly confirm the capital raise but said it looks forward to availing itself of the government’s aviation credit line “as appropriate, to further strengthen our growth plans.”
SNV Aviation’s shareholder base includes Akasa Air founder and Chief Executive Officer Vinay Dube, the family of late billionaire investor Rakesh Jhunjhunwala, a private equity fund managed by 360 ONE Asset Management, and other investors.
Despite the challenging operating environment, Akasa has continued expanding more rapidly than most competitors. While overall airline capacity in India declined by 6% during March and April, Akasa increased its flight operations by 13.2% year-on-year, making it the only domestic carrier to significantly expand capacity during that period.
The airline currently operates a fleet of 40 Boeing 737 MAX aircraft. For the financial year ended 31 March 2026, Akasa reported a 37% increase in operating revenue, supported by 30% growth in available seat kilometres (ASKs). Chief Financial Officer Ankur Goel also announced last month that the airline plans to expand capacity by another 30% during FY2027, underscoring management’s confidence in long-term demand despite current geopolitical and cost pressures.
The proposed fundraising would provide Akasa with additional liquidity to support fleet expansion, network growth and working capital requirements while mitigating the impact of elevated fuel prices and operational disruptions caused by the conflict in the Middle East. If completed, the transaction would further strengthen the airline’s balance sheet as it pursues continued expansion in India’s highly competitive aviation market.
