Regional carrier Fly91 has unveiled an aggressive five-year expansion plan to transform its operations significantly. According to reports from Mint, the airline currently operates six ATR 72-600 aircraft from bases in Goa and Hyderabad, but plans to expand to more than 50 aircraft and 50 destinations across the country over the next five years. The airline currently operates around 280 weekly flights, of which about 98 are under the government's regional connectivity scheme. As reported by Mint, Manoj Chacko, managing director and CEO of Fly91, stated that the airline plans to add four more operating bases as it scales up operations.
Despite the aggressive expansion plans, Fly91 is targeting measured growth rather than rapid expansion. According to Mint, the airline is targeting cash break-even by the end of FY27 and operational profitability in FY28. For context, Just Udo Aviation Pvt. Ltd, which runs Fly91, ended FY25 with about ₹127 crore in revenue and a loss of ₹66 crore. The airline is positioning itself as a challenger in India's regional aviation market, where turboprop aircraft serve routes that typically take eight to 12 hours by road or rail but can be completed in less than 90 minutes by air.
To fund its expansion, Fly91 has raised ₹250 crore in equity so far and recently completed a convertible funding round of more than ₹60 crore that was oversubscribed by existing investors. As reported by Mint, Chacko stated that the company believes raising capital to lease additional aircraft will not be a constraint as it scales operations. The airline is targeting cash break-even by the end of FY27 and operational profitability in FY28. Fly91 currently operates under the Udan scheme, receiving 55% of its revenue from the Udan scheme in FY25.
The airline's business model provides significant advantages over traditional jet operators in terms of fuel efficiency and cost structure. According to Mint, fuel accounts for only 22-23% of revenue, significantly lower than the 38-40% typically seen at jet operators. Gagan Dixit, aviation analyst at Elara Securities, noted that the recent West Asia crisis reinforced these advantages, with fuel costs increasing from 22% to 28% of revenue for Fly91, while the estimated increase for narrow-body jet operators would be about 6% due to the West Asia crisis. The airline has outsourced several non-core functions while maintaining a lean corporate office and avoiding traditional overheads such as airport ticket offices and call centres.
Despite the expansion plans, Fly91 faces structural challenges in India's regional aviation market. According to Mint, Chacko identified limited slot availability at major airports and reluctance of Indian banks to finance aviation assets as key constraints. The airline believes its business model also provides greater resilience against fuel price volatility. Chacko also gave support to Adani Group's plan to explore non-controlling stakes in regional carriers, emphasizing the need for strong governance and transparency to prevent unfair advantages in slot allocation and counter availability.
