Air India Express is projected to post an operating profit in the second half of FY26, a first since its privatisation, as shared by management with employees at a townhall in Gurugram. This milestone reflects the airline's focused commercial strategy, sharper capacity deployment, and enhanced customer proposition yielding results.
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 due to travel restrictions disrupting operations.
In the post-privatisation phase, financial performance has been under pressure amid rapid expansion and integration, but the projected operating profit in FY26 signals stabilisation. Management highlighted that this turnaround is driven by improving unit economics, tighter cost control, and stronger operational performance, despite ongoing challenges in the aviation sector.
At the townhall, the airline positioned itself as a 'value carrier', offering a differentiated experience between full-service and low-cost models. As part of this, Air India Express is investing over $70 million in a retrofit program to deliver a premium product.
Since privatisation, capacity measured by available seat kilometres (ASKs) has nearly doubled, and market share has tripled. The airline maintains a nearly even split between international and domestic flights (54:46), compared to IndiGo's 70:30 domestic skew.
It is now India's second-largest airline by domestic routes (110 vs Air India's 70), domestic stations (45 vs 43), and international routes (75 vs 60). With a current operating fleet of around 110 aircraft, it aims to expand to 300 by FY31, targeting 25% market share.
Customer experience has improved markedly, with net promoter score more than tripling, and it has ranked among India's top airlines for on-time performance (OTP) in the last two months. Management emphasised long-term focus on sustaining performance, enhancing margins, and delivering reliable service.
