01 Aug 2025

#1 August 2025: India Aviation Newsletter

Akasa Air Reports Strong Financial Performance in FY 24-25

Akasa Air reported strong revenue gains for the fiscal year ended 31st March 2025. The airline’s steadfast focus on cost leadership, alongside a disciplined approach to revenue generation and operational efficiency, has enabled it to register robust growth across financial parameters in FY 24-25, and has further propelled the airline on a successful path toward profitability.

Akasa Air registered a revenue growth of 49% supported by increased unit profitability. Capacity in terms of Available Seat Kilometres (ASKs) grew at a staggering rate of 48% compared to FY25. This was driven by a 13% increase in stage-adjusted Revenue per Available Seat Kilometre (RASK), supported by enhanced focus across key business functions, including strengthened distribution capabilities and strategic investments in technology.

The airline’s Unit Cost per Available Seat Kilometre (CASK), excluding fuel, reduced by 7% and EBITDAR margins for the year improved by 50%, despite industry-wide inflationary pressures.
Akasa Air CFO, Ankur Goel, said,

Akasa Air’s financial performance reflects the strength of our business model and the disciplined execution of our strategy. We are optimistic about the future and are looking forward to building on the momentum of our robust financial and commercial performance in the years ahead.

IndiGo Takes Off from Hindon

IndiGo, India’s preferred airline, has taken a strategic leap in strengthening its offerings from the National Capital Region (NCR) by commencing operations from Hindon Airport in Ghaziabad, its second airport in the NCR after Delhi.

The carrier will now operate direct flights connecting Hindon with nine major Indian cities including Ahmedabad, Bengaluru, Chennai, Goa, Indore, Kolkata, Mumbai, Patna, and Varanasi. The development enables enhanced connectivity for millions of residents in Ghaziabad, Noida, East and Central Delhi, and parts of Western Uttar Pradesh.
IndiGo CEO Peter Elbers said,

We are delighted to announce the launch of IndiGo’s operation from Hindon Airport in Ghaziabad, our second airport in the National Capital Region, offering direct flights to nine key Indian cities. With nearly 70 weekly departures from the airport, we aim to enhance point-to-point travel for customers from the region, offering them the option of taking a flight from an airport closer to their homes. We are grateful to the Hon’ble Minister for Civil Aviation, Shri Kinjarapu Ram Mohan Naidu Ji, for his presence at the inauguration ceremony and also for his constant support and guidance.

Northern Region Ministers’ Conference on Civil Aviation Held in Dehradun

The Northern Region Ministers’ Conference on Civil Aviation 2025, organised by the Ministry of Civil Aviation, Government of India, was held in Dehradun, Uttarakhand, with the broad vision of ‘unlocking the vast potential of the aviation sector in the country’, as put by Union Minister of Civil Aviation Shri Kinjarappu Rammohan Naidu.
The session saw participation from states/UTs including Rajasthan, Haryana, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Punjab, Ladakh and Chandigarh.
Union Minister Shri Rammohan Naidu said,

Through this strategic initiative we aim to identify the regional opportunities and unlock the vast potential of Tier II and Tier III cities. If we look at the sector through numbers, then we can clearly see the scale of the opportunity that exists. In just 10 years, we have added 88 new airports—that is nearly one new airport every 40 days. In the last 10 years, we have added 60 additional flights every hour. Flying in India today is more accessible, more available and more affordable. Under the leadership of Prime Minister Sh. Narendra Modi, Indian skies are more connected, competitive and collaborative.

Acumen’s Take

On Akasa Air’s Financial Performance

Akasa’s 49% revenue growth and 48% ASK expansion reflect not just scale, but structural maturity. Its ability to improve RASK while reducing ex-fuel CASK signals a tight grip on yield management and operational efficiency. For a relatively young carrier, this performance underscores its competitive edge in the LCC segment and reaffirms its positioning as a credible disruptor in Indian aviation.

On IndiGo’s Launch at Hindon Airport

IndiGo’s expansion into Hindon Airport is a notable example of network optimisation in a multi-airport city like Delhi NCR. This move allows better traffic distribution, improved customer convenience for residents in outer zones, and decongestion at IGI. Strategically, it also aligns with the UDAN philosophy of democratising air access.

On the Northern Region Civil Aviation Conference

The Dehradun conference highlighted the Centre’s renewed focus on regional aviation infrastructure. With 88 new airports added in a decade, attention is shifting to sustainability, connectivity gaps in hilly and border regions, and unlocking Tier II/III growth. Continued state-centre collaboration will be crucial in balancing aviation expansion with infrastructure readiness.

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