Air India Express is projected to post an operating profit in the second half of FY26, a first since its privatisation, the airline’s management told employees at a townhall in Gurugram.
The projection shared during a monthly townhall at the airline’s Gurugram headquarters was attended by managing director Aloke Singh and chairman Nipun Aggarwal.
The management said that the airline’s focused commercial strategy, sharper capacity deployment and enhanced customer proposition had started yielding results. They also highlighted the ongoing investments in fleet, systems and people aimed at building a scalable and sustainable airline.
Air India Express, launched in 2005, was profitable for much of its pre-pandemic history, particularly through the 2010s, supported by a focused short-haul international network. The airline slipped into losses during the Covid 19 period as operations were disrupted by travel restrictions.
In the post-privatisation phase, financial performance for the airline has remained under pressure amid rapid expansion and integration, making the projected operating profit in FY 26 an important sign of stabilisation.
Talking about the company’s long-term focus, the management told its employees that though operating profitability was an important milestone, emphasis would remain on sustaining performance, improving margins and delivering dependable service.
The management said the expected operating profit reflects a turnaround driven by improving unit economics, tighter cost control and stronger operational performance, despite ongoing challenges in the aviation sector.
At the townhall, the management said Air India Express positions itself as a “value carrier”, offering a differentiated experience between a full-service airline and a low-cost carrier.
As part of this strategy, the management announced that AIX is investing over $70M in the retrofit program, delivering this highly differentiated product and premium experience.
The airline, officials said, declared its capacity, measured by available seat kilometres(ASKs), to have nearly doubled since privatisation, while market share tripled from earlier levels.
The airline has a nearly even percentage of flights between international and domestic routes (54:46 versus IndiGo at 70:30).
“It is now the second largest airline in India in terms of domestic routes (110 vs 70 for Air India), domestic stations (45 vs 43 for Air India) and international routes (75 vs 60 for Air India),” one of the announcements stated.
“It aims to expand its fleet to 300 aircraft by FY31, targeting a 25% market share,” an official said. To be sure, Air India Express currently has an operating fleet of around 110 aircraft.
It also pointed to improvements in customer experience, with its net promoter score more than tripling, and said it has ranked among the top airlines in India for on time performance (OTP) in last two months.