Akasa Air Sees Rise in Passenger Numbers as Major Rivals Cut Capacity Amid Global Economic Uncertainty

Akasa Air Emerges as Growing Threat to IndiGo-Air India Duopoly

India's youngest airline, Akasa Air, has been the only carrier to add meaningful capacity in the local market in recent months. Despite disruptions caused by the Iran war, the airline has expanded its capacity by 13.2% across March and April from the same period a year earlier.

According to data from Cirium, an aviation analytics firm, the total number of flights operated by the country's four major airline companies dropped nearly 6% across March and April from the same period a year earlier. IndiGo, the country's largest airline, had 4.5% fewer flights, while Air India Ltd.'s full-service airline reduced services by 7.5% and its low-cost unit Air India Express did so by 17.1%.

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In contrast to its larger rivals, Akasa Air operated 10,109 flights in March and April 2026, accounting for about 4.7% of the total number of domestic and international flights by Indian airlines during the period.

The latest Middle East conflict has hit India's airlines with higher fuel costs and disruptions to some international routes. Carriers have had to cancel flights and divert some international routes around Iranian airspace, adding to challenges they already faced because they couldn't use Pakistani airspace. Domestic demand has also softened as carriers have passed on higher fuel and operating costs through increased fares.

The Iran war, which escalated after the US and Israel launched air strikes on Iran on February 28, has had a significant impact on India's airlines. SpiceJet Ltd., once a major competitor in the budget segment, increased flights by just 1% in March and April this year from a year ago, according to Cirium data.

Akasa Air operates domestic routes and currently flies to seven international destinations. Within India, it carried 5.4% of passengers in March, according to government data that tracks domestic airline traffic, compared with IndiGo's 63.3% and the Air India Group's combined 26.2%. The official figures for April have yet to be released.

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Akasa Air currently operates 38 Boeing Co. 737 MAX aircraft, versus more than 420 planes at IndiGo and roughly 300 across the Air India Group. The carrier has placed a firm order for 226 more planes, which would be delivered in the coming years. Its smaller scale has allowed for faster redeployment of aircraft, while larger carriers operate tightly scheduled networks with limited room to add flights on short notice.

The Mumbai-based airline is owned by SNV Aviation Pvt., whose shareholders include Akasa's founder and CEO Vinay Dube, the family of the late billionaire Rakesh Jhunjhunwala, a private equity fund overseen by 360 ONE Asset Management, and other investors.