Chennai's Afcom Holdings signed an LOI for up to four Boeing 777-8 freighters, a first for India. Fleet plan, Rs 392M quarterly profit, and the Southeast Asia cargo play.
Cover image: Air China Cargo Boeing 777 freighter in flight (illustrative image) — photo by Robbie Klinkenberg, CC BY-SA 4.0, via Wikimedia Commons.
Chennai-based Afcom Holdings has signed a letter of intent with Boeing for up to four new-build 777-8 freighters, its first-ever widebody move and potentially the first 777 freighter operation in India. The deal was disclosed through a stock-exchange filing on September 2, 2026, and chairperson Deepak Parasuraman confirmed "the intent is to take four", subject to final definitive agreements. Commercial terms and a delivery timeline were not disclosed because of non-disclosure agreements.
The widebodies will be stationed at Chennai, Afcom's current freighter base, and are meant to carry the carrier beyond its Dubai-focused Middle East network into the Far East and Africa. Management says client interest is already in hand and sees demand in the India-Southeast Asia-Far East-Africa lane supporting several operators, with an expected cargo mix of pharmaceuticals, perishables, engineering equipment and automotive parts varying by destination. The 777-8F was chosen for its payload, which management describes as a capacity class with no accessible rival. The move lands in a buoyant year for freight, as our midyear air-cargo review documented.
What is Afcom's fleet plan?
Afcom currently flies three Boeing 737-800 freighters and aims to reach five 737s within a couple of months. The widebody plan starts with considering used 777s before layering in the new-build 777-8Fs, a pragmatic path given the type has yet to enter service. The carrier operates scheduled and ad hoc charter cargo across the Middle East, the Maldives and parts of Southeast Asia, with Dubai as its primary overseas gateway. Recent milestones include three weekly 737 services from Navi Mumbai International Airport to Dubai World Central, transferred from Mumbai in August, and a June inaugural from Noida International Airport that moved about 20 tonnes on a Chennai-Noida-Chennai rotation. Domestic 737 flying is largely charter work; international scheduled cargo, spanning perishables, general cargo, dangerous goods and pharma, is the core business.
Can Afcom afford widebodies?
The numbers suggest a carrier scaling fast. For the quarter ended June 30, 2026, Afcom posted profit after tax of Rs 392.4 million, up 86% year on year, on operating revenue of Rs 1.761 billion (up 48% from Rs 1.189 billion). Profit before tax reached Rs 522.3 million against Rs 308.9 million a year earlier, with earnings per share of Rs 14.16 versus Rs 8.48. Both revenue and profit dipped against the March quarter, and direct expenses nearly doubled to Rs 1.096 billion, a reminder that growth is being bought at rising cost. For the full year ended March 31, 2026, revenue was Rs 5.831 billion with profit after tax of Rs 1.219 billion. It is a similar regional-carrier ambition story to Fly91's 40-aircraft ATR order last week, except Afcom is betting on long-haul freight rather than regional passengers.
| Afcom metric | Figure |
|---|---|
| 777-8Fs under LOI | Up to 4 (intent: 4) |
| Current fleet | 3 Boeing 737-800 freighters |
| Near-term 737 target | 5 aircraft |
| Q1 FY27 profit after tax | Rs 392.4 million (+86% YoY) |
| Q1 FY27 operating revenue | Rs 1.761 billion (+48% YoY) |
| FY26 revenue / profit | Rs 5.831 billion / Rs 1.219 billion |
Why does the 777-8F matter for India-Southeast Asia cargo?
Widebody freighter capacity out of India is dominated by foreign carriers and the Gulf hubs, so a home-based 777 freighter operator would keep more long-haul cargo revenue on Indian books. Afcom's president Kochat Narendran told the ACFI World Conclave 2026 in Delhi that Southeast Asia including Singapore is the next focus, pending regulatory clearance, flagging Vietnam electronics trade and Bangkok-bound perishables as openings. That lanes up directly with the 777-8F's range-payload case. Gulf competition is intensifying at the same time: Emirates SkyCargo keeps expanding its own 777F fleet, so Afcom will be fighting for the same pharma and perishables flows.
Frequently asked questions
How many Boeing 777 freighters is Afcom buying?
Afcom has signed a letter of intent for up to four new-build Boeing 777-8Fs, with the chairperson confirming the intent is to take all four. The LOI is conditional on final definitive agreements, so the count could still adjust.
Where will Afcom base its 777 freighters?
At Chennai, the carrier's current freighter base, flying beyond its Dubai-focused Middle East network into Far East and African markets carrying pharma, perishables, engineering equipment and auto parts.
Is Afcom profitable?
Yes. June-quarter profit after tax was Rs 392.4 million, up 86% year on year, on revenue of Rs 1.761 billion, up 48%. Full FY26 revenue was Rs 5.831 billion with Rs 1.219 billion profit.
When will Afcom's 777-8Fs arrive?
No timeline has been disclosed due to NDAs. The carrier plans to consider used 777s first, then add the new-build 777-8Fs, which themselves have yet to enter commercial service with any airline.
