How Akasa Air capacity is growing amidst downsizing by IndiGo, Air India

Akasa Air, the youngest airline in the country, is growing at a much faster pace and has added 157,000 additional seats in June and July this year compared to the same period in 2025.

In July, Akasa is the only airline in the country to have added capacity, as per the latest data from aviation analytics firm OAG. Akasa Air increased capacity by the fastest rate, up 7.4% vs July 25 to 881,000 seats or 60,000 additional seats.

The airline is also in talks to raise ₹1050 crore to due headwinds posed by the West Asia crisis.

IndiGo continues to hold the majority share of capacity from India with a 51% share of the market. IndiGo's capacity in July 26 is 11.6 million seats, with a slight decrease of 0.3% year-on-year.

MUST READ | Akasa Air pauses Noida–Navi Mumbai route weeks after launch amid network review: Report

Air India (AI), the second biggest airline in India, with 2.8 million seats, has a 12% market share. AI’s capacity contracted again by 19.2%, or 659,000 lakh fewer seats in July 26 compared to last year. Air India Express (IX) also reduced capacity by 17% vs July 25, with 445,000 fewer seats.

How it was in June?

IndiGo capacity in June 26 is 12.3 million seats, a 1% increase compared to last year. Air India capacity contracted again by 27% in June 26 compared to last year. Combined, the Air India group carriers operate at 22% of capacity.
Akasa Air increased capacity by the fastest rate 12% vs June 25 to 916,000 seats with 97,000 additional seats in June this year.

Akasa announced last month that its operating revenue increased 37% in the year ended March 31, owing to a 30% growth in capacity measured by available-seat-kilometers.

DON'T MISS | Flying from Delhi today? IndiGo issues travel advisory as rain disrupts flight schedules

The airline also announced plans to increase capacity by 30% during the current financial year ending March 31, 2027, Chief Financial Officer Ankur Goel told reporters last month.

Raising funds

Akasa Air is looking to raise ₹1,050 crore through equity and debt, people familiar with the matter said. India’s youngest airline seeks funds to overcome challenges brought on by the Iran war, said a report by Bloomberg.

The airline has approached existing as well as two new investors to raise about ₹800 crore through equity, said the people, who asked not to be identified as the discussions are private.

It is also in talks with state-run banks for at least ₹250 core in debt, they said, under an India government credit line for carriers hit by the conflict.