Air cargo operator Afcom Holdings Limited has expanded its fleet with the induction of a third aircraft after receiving the Certificate of Registration (CofR) from the Directorate General of Civil Aviation (DGCA), strengthening its capacity amid a sharp rise in global air freight demand.
The company announced on Wednesday that the regulatory clearance allows the newly acquired aircraft to be formally added to its operational fleet, boosting its cargo carrying capability at a time when geopolitical tensions and limited capacity from Middle Eastern carriers are tightening global freight supply.
The additional freighter is expected to significantly enhance Afcom’s domestic and international cargo operations, enabling the airline to respond more effectively to rising demand and supply chain disruptions.
Founded in 2013 in Chennai, Afcom Holdings received its Air Operator’s Certificate from the DGCA in December 2024 and began commercial cargo operations later that year with a Boeing 737-800F freighter. The airline initially launched services on the Chennai–Bangkok route.
Afcom also strengthened its financial position after listing on the BSE SME Platform in August 2024, raising ₹73.83 crore through its initial public offering.
Earlier this year, the carrier received a further boost when India’s Ministry of Finance designated it as a “Designated Indian Carrier” in February 2026, granting a value-added tax exemption on Aviation Turbine Fuel (ATF). The benefit is expected to reduce operational costs by around 5–7%.
Expanding capacity amid demand surge
With the addition of the third aircraft, Afcom aims to scale up cargo volumes and improve operational flexibility, including better route scheduling and potential expansion into new international destinations such as Singapore.
The expansion comes at a time when global geopolitical tensions and supply chain disruptions have triggered a spike in air cargo demand, particularly as limited capacity from several Middle Eastern carriers constrains freight availability.
Competitive landscape
Afcom operates in a competitive air cargo market dominated by larger operators such as IndiGo’s cargo division, SpiceXpress, and Blue Dart Aviation.
While these carriers have larger fleets and broader networks, Afcom is focusing on niche international routes and specialised cargo services to build its market share in the growing air freight sector.
Risks remain
Despite the favourable demand environment, industry experts caution that geopolitical tensions could also drive volatility in aviation fuel prices and lead to airspace closures or longer flight routes, increasing operating costs.
Investors and industry observers are expected to closely monitor the utilisation of Afcom’s expanded fleet, its route expansion strategy, and the sustainability of the current surge in air cargo demand.
