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Afcom Cargo Signs Letter of Intent with Boeing for Up to Four 777-8F Freighters

Afcom Cargo Signs Letter of Intent with Boeing for Up to Four 777-8F Freighters
Chennai-based Afcom Holdings has entered into a letter of intent (LOI) with Boeing to acquire up to four Boeing 777-8F freighter aircraft, marking a pivotal development in the company’s strategy to expand its cargo operations and enhance its long-haul freight capabilities. The LOI, a preliminary agreement that lays the groundwork for negotiating a definitive purchase contract, was disclosed to the Bombay Stock Exchange and remains contingent upon the finalisation of binding documents between Afcom and Boeing.
Strategic Expansion into Wide-Body Freighter Operations
If finalised, this acquisition would represent the first order for the Boeing 777-8F by an Indian carrier, according to Afcom. The company has committed to providing further updates on the progress of the agreement, including the execution of a definitive purchase contract, should there be any material developments. This move signals Afcom’s entry into wide-body freighter operations, a significant step up from its current fleet of narrow-body Boeing 737-800 freighters. The airline has been steadily expanding its cargo network, recently inaugurating a thrice-weekly service between Navi Mumbai and Dubai World Central. The planned induction of four Boeing 777 wide-body aircraft aligns with Afcom’s long-term fleet expansion strategy.
Financial and Market Implications
Afcom has indicated that capital raised through equity issues and a qualified institutional placement (QIP) will be allocated towards the acquisition of the aircraft and related expenses, including lease deposits, insurance, customs duties, equipment, and crew training. The company faces the challenge of managing capital prudently to finance the acquisition while ensuring regulatory compliance during the integration of the new aircraft into its operations.
The market response to the announcement has been largely positive, with investors acknowledging the strategic importance of enhanced long-haul capabilities for Afcom’s growth trajectory. This expansion follows a period of robust financial performance, with the company reporting revenue from operations rising to ₹583.1 crore in FY26, up from ₹238.7 crore in FY25, and net profit increasing to ₹121.9 crore from ₹36.9 crore over the same period.
As Afcom advances its fleet expansion, competition within the industry is expected to intensify, with rivals likely to underscore their own safety records. The proposed deal not only positions Afcom to strengthen its footprint in the international air freight market but also highlights the growing ambitions of Indian cargo carriers within the global aviation sector.

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