Air India Express expects first post‑privatisation operating profit, shows memo

The forecast for the second half ending in March was recently presented at a town hall by Air India Express executives

Air India Express, Air India's low-cost unit, is expected to report an operating profit in the second half of this fiscal year, its first since it was bought by Tata Group in 2022, boosted by an increase in capacity and higher market share.

The profit forecast offers some respite to the Air India Group, with the full-service carrier Air India facing a financial hit from an airspace ban imposed on Indian airlines by Pakistan.

The forecast for the second half ending in March was recently presented at a town hall by Air India Express executives, according to highlights of the event seen by Reuters. The airline is also investing more than $70 million in refurbishing its aircraft, according to the highlights first reported by Indian media outlets.

An Air India Express spokesperson did not immediately respond to Reuters' request for comment.

Air India Express, which operates more than 100 Boeing and Airbus narrowbody jets, is targeting a doubling of its capacity in the next four to five years, with expansion plans for a fleet of more than 200 aircraft, its managing director said in October.

Air India Express, along with its full-service parent, is being closely scrutinized by analysts and government officials for progress in its turnaround. Last month, the airline said it would add 30 new Boeing 737 MAX jets to its fleet.

Air India is in the midst of a multi-billion-dollar turnaround after a period of decay under government ownership, but its restructuring is being constrained by ongoing jet delivery delays from planemakers.

Its losses have proven a drag on the financial results of Singapore Airlines, which owns a 25% stake in the Indian carrier.