Air India Express Set to Post First Operating Profit Since Privatisation

Air India Express has reached a key financial milestone by posting an operating profit for the first time since Air India was privatised in January 2022. The Tata Group-owned airline is projected to report an operating profit in the second half of FY26 (H2 FY26), supported by tighter cost control, improving unit economics, and stronger operational performance.

This turnaround is being seen as an important step in the wider transformation of the Air India Group.

Cost Discipline and Better Execution Drive Turnaround

The airline’s operating profitability has been linked to sustained financial discipline and a more focused commercial strategy. Management has highlighted that sharper capacity deployment, improved efficiency, and a stronger customer proposition have contributed to this improvement.

At the same time, the airline continues to invest in fleet upgrades, systems, and people. These investments are aimed at building a business that can scale without losing operational stability.

While achieving an operating profit is a major achievement, the airline’s longer-term focus remains on improving margins further and maintaining dependable service.

Rapid Expansion Since 2022

Air India Express has expanded aggressively since privatisation. Its available seat kilometres (ASKs) have nearly doubled, and its market share has tripled.

The airline has also emerged as the second-largest domestic airline in India after IndiGo, based on network footprint. It now operates:

• 110 domestic routes, compared to 70 for Air India
• 45 domestic stations
• 75 international routes across 60 stations

Its network is almost evenly split between domestic and international operations, with a 54:46 ratio. This differs from IndiGo’s model, which remains more heavily domestic with a 70:30 ratio.

Ambitious FY31 Growth Plan

Air India Express has set a high growth target over the next few years. By FY31, it aims to:

• Operate a fleet of around 300 aircraft
• Reach nearly three times growth from current levels
• Achieve a 25% share of India’s domestic aviation market

If executed well, this would make the airline a much stronger competitor in India’s fast-growing air travel sector.

Value-Carrier Strategy and Customer Experience Push

Rather than positioning itself as a traditional low-cost airline or a full-service carrier, Air India Express is building a “value-carrier” model. The airline is targeting a more premium and differentiated flying experience while still keeping pricing competitive.

As part of this strategy, it is investing over $70 million in a retrofit programme to upgrade its product offering.

Read more: Bharat Taxi Launches Today: Driver-Owned Ride Service Challenges Ola and Uber.

Conclusion

Air India Express posting its first operating profit since privatisation marks a significant milestone for the Tata Group and the broader Air India transformation. Strong cost control, rapid network growth, and a clearer strategy have helped improve performance. With ambitious FY31 plans and continued investment in customer experience, the airline is positioning itself as a key force in India’s aviation market.

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