Skyways Air says Qatar Airways contract terms finalised, sign-off due soon

Skyways Air Services has finalised the terms of its Qatar Airways contract and expects the formal sign-off in the next few weeks, Chairman and Managing Director Yashpal Sharma said.

The company typically signs carrier capacity contracts for 12 months, giving it access to capacity across European, Middle Eastern, Indian and Far Eastern airlines.

Skyways is working to strengthen its financial position following its initial public offering (IPO). The company plans to use around ₹216 crore of the IPO proceeds to reduce long-term debt, which Sharma says could result in ₹16-18 crore of interest-cost savings this year.

Skyways will also deploy around ₹130 crore towards working capital to support future growth. The company currently has gross debt of around ₹600 crore, while net debt stands at about ₹198 crore.

The company has also seen a sharp improvement in cash generation. Operating cash flow rose to ₹113 crore in 2025-26 (FY26) from a negative ₹9 crore in 2023-24 (FY24), helped by higher volumes, better profitability, incentives from carrier partners and improved working-capital management.

Skyways' gross working-capital cycle has improved from 90 days to 75 days, while the net cycle stands at around 43 days. Sharma said the improvement is sustainable, helped by credit received from carrier partners.

Technology investments are also helping the company scale without a similar increase in its workforce. Skyways has invested in technology over the past seven to eight years and has application programming interface (API) integrations with major airline, shipping line and logistics partners.

“We feel that, in times ahead, the increase in workforce would not be as much in the increase of our business,” Sharma said.

Skyways currently has a 5.64% share of India's air-export cargo market. Sharma said its scale and access to carrier capacity help the company acquire customers, improve profitability and build stronger customer relationships.

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On compliance matters disclosed in the IPO documents, Sharma said the Economic Offences Wing investigation is nearing completion and that the company has made the required disclosures. He also said pending compliance matters linked to an earlier acquisition have been addressed.

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