Tata-owned Air India Express eyes first operating profit since privatization
What's the story
Air India Express, the low-cost subsidiary of Air India, is on track to post its first operating profit in the second half of this fiscal year. The airline's financial turnaround comes after being acquired by Tata Group in 2022. The positive forecast was recently shared at a town hall meeting by executives from Air India Express.
Financial challenges
Profit forecast brings relief amid Pakistan's airspace ban
The profit forecast comes as a relief to the Air India Group, which has been reeling under an airspace ban imposed on Indian airlines by Pakistan. The airline is also investing over $70 million in refurbishing its aircraft. Despite these financial hurdles, Air India Express's growth strategy remains aggressive with plans to double its capacity in the next four to five years.
Growth strategy
Airline's ambitious expansion plans
Air India Express, which currently operates over 100 Boeing and Airbus narrowbody jets, has ambitious expansion plans. The airline's managing director revealed in October that they plan to expand their fleet to over 200 aircraft. Last month, Air India Express also announced its decision to add 30 new Boeing 737 MAX jets to its already growing fleet.
Oversight
Air India Group under scrutiny
Despite the ambitious expansion plans, Air India Express and its full-service parent company are under close watch from analysts and government officials. The scrutiny is focused on their turnaround progress. Notably, Air India is currently undergoing a multi-billion-dollar restructuring after years of decline under government ownership. However, the process has been hampered by ongoing jet delivery delays from manufacturers.