Air India Express has projected that it will post an operating profit in the second half of FY26, marking the first time the airline expects to achieve such a milestone since its privatisation in January 2022. 

The projection was announced during the airline’s monthly town hall at its headquarters in Gurugram, attended by Nipun Aggarwal, Chairman of Air India Express, and Aloke Singh, Managing Director.

Operating profit refers to the income an airline earns from its core business of flying passengers, after accounting for operating costs such as fuel, staff salaries, aircraft leases and maintenance, but before interest and tax expenses.

The management said the projected operating profit is the result of multiple initiatives implemented during FY26. These include improved unit economics, meaning better revenue and cost performance per seat, tighter control over expenses, and stronger operational execution, even as the airline continues to face industry-wide challenges such as high fuel prices and aircraft supply constraints.

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According to the leadership, a focused commercial strategy, more efficient use of aircraft capacity, and an improved customer offering have begun to deliver visible results.

The airline has also significantly improved its customer satisfaction levels. Its Net Promoter Score (NPS), a key measure of customer loyalty and satisfaction has more than tripled and reached an all-time high, the management said.

Operationally, Air India Express has delivered the highest on-time performance in India over the past two months and has consistently ranked among the top performers this financial year.

In terms of network scale, the airline is now the second-largest airline in India by the number of domestic routes, domestic stations and international routes, with an almost equal split between domestic and international operations.

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Air India Express has grown rapidly since its privatisation. The airline’s available seat kilometres (ASKs), a standard measure of airline capacity have nearly doubled, while its market share has tripled over the same period, reflecting strong expansion in both fleet and network.

Looking ahead, the airline is targeting three-fold growth by FY31 and aims to achieve a 25 per cent market share with a fleet of around 300 aircraft.

The management reiterated that Air India Express is positioning itself as a “value carrier”, sitting between a full-service and a low-cost airline, offering passengers a more premium and differentiated experience.

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As part of this strategy, Air India Express is investing over $70 million in a large-scale retrofit programme to upgrade aircraft interiors and onboard products. These upgrades are designed to enhance passenger comfort and overall travel experience.

While Air India Express is expecting to turn operationally profitable in the second half of the year, its parent company, Air India, is reportedly likely to record significant losses for the full FY26 due to the impact of last year’s AI171 crash and ongoing airspace restrictions affecting international operations.