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Air India Express is expected to report its first operating profit since being acquired by the Tata Group in 2022, indicating steady improvement in the airline's financial and operational performance. The low-cost carrier's progress is supported by capacity expansion, higher market share, and tighter cost management. The airline is also investing over USD 70 million in aircraft cabin upgrades and standardisation. While the full-year result may still show a loss, the projected operating profit marks a key operational milestone in the airline's ongoing turnaround.
Air India Express, the low-cost airline under the Air India Group, is on course to record its first operating profit since its acquisition by the Tata Group in 2022. This outlook was shared internally with employees during a recent town hall, where management discussed the airline's improving financial position and near-term performance expectations. Advertisement
The airline's progress has been driven by a combination of capacity growth, improved load factors, and a gradual increase in market share across domestic and short-haul international routes. These gains have been supported by tighter cost controls and better utilisation of aircraft, helping strengthen unit economics after years of losses prior to privatisation.
Air India Express currently operates a fleet of over 100 narrow-body aircraft, including Boeing and Airbus models. As part of its long-term strategy, the airline plans to significantly expand its fleet to more than 200 aircraft over the coming years. Orders include additional Boeing 737 MAX aircraft, which are expected to improve fuel efficiency and reduce operating costs.
Alongside fleet expansion, the airline has committed more than USD 70 million towards cabin refurbishment and standardisation. The investment is aimed at improving consistency across the fleet and enhancing passenger comfort, while maintaining the airline's low-cost structure. This effort also aligns with the wider Air India Group's plan to refresh its product offering following the Tata takeover.
Despite the expected operating profit, Air India Express is likely to report an overall loss for the full financial year, reflecting ongoing investments and external pressures. The airline has also faced challenges from disruptions such as regional airspace restrictions, which have affected flight operations and costs.
However, the shift toward operating profitability signals a meaningful change in performance compared to the years preceding the acquisition. It also provides a measure of stability for the broader Air India Group, which continues to work through a multi-year restructuring and integration process across its airlines.
Source Reuters
5th Jun, 2025
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