Smaller Asian airlines seek to add routes despite Middle East war, rising fuel costs

India’s Akasa Air and Malaysia’s AirBorneo are pressing ahead with expansion plans despite soaring jet fuel prices and disruption from the Middle East conflict, in a development that analysts say is a sign smaller Asian carriers are finding room to grow as larger airlines grapple with capacity constraints.Akasa Air, India’s youngest airline, said last week that it was seeking to raise 10.5 billion rupees (US$110 million) through equity and debt, including loans from state-run banks, to fund the expansion. Last month, the Mumbai-based low-cost airline said it was targeting a 30 per cent increase in its passenger-carrying capacity in the financial year to March 2027.The airline flies mainly to Indian cities and several destinations in the Middle East and Southeast Asia.