Air India is planning additional orders for wide-body aircraft to expand its international operations, even as high operating costs and airspace disruptions put pressure on its return to profitability, chief executive officer and managing director Tewolde Gebremariam said on Tuesday.
Speaking at the Aviation India and South Asia Summit, Gebremariam said the airline had discussed further wide-body purchases with Airbus and Boeing. “We want more wide-body aircraft… the opportunity is huge,” he said.
The comments come after Air India and Air India Express reported a consolidated net loss of ₹22,238 crore in FY26, more than double the ₹10,859 crore loss recorded in FY25. Gebremariam said the group would return to profitability “very soon” and that shareholders Tata group and Singapore Airlines had given the management team their full backing and a long-term outlook.
Since its privatisation in January 2022, the Air India group has placed firm orders for 600 aircraft from Airbus and Boeing. The order book includes 80 wide-body aircraft: 50 Airbus A350s, 20 Boeing 787 Dreamliners and 10 Boeing 777X planes. The remaining 520 aircraft are narrow-body models used mainly for domestic and short-haul international services.
The airline’s immediate priority is to reduce operating costs. Gebremariam described cost per available seat kilometre, or CASK, as a “major concern” and said it was currently too high. CASK measures the cost of operating each available seat over every kilometre flown, making it a key indicator of airline efficiency.
“Every aspect of the business, we have to see unit costs as compared to the industry. And, we are working to bring it down, at least to an industry level, if not more,” he said.
Air India is also adjusting its international network in response to airspace restrictions. Flights linking Europe and the United States have been more affected by the closure of Pakistani airspace, with Delhi facing a greater impact than Mumbai. The airline will continue operating from Delhi but plans to shift more Europe and US services to Mumbai, while also examining Bengaluru as another potential hub.
Delhi will remain important for Air India’s eastern and southeastern network, which has not been affected by the restrictions to the same extent. The airline plans to continue developing those markets from the national capital while modifying its European and North American operations.
To strengthen revenue, Air India is expanding international sales teams and increasing bookings through overseas markets. The strategy is intended to balance sales made in India with foreign-market bookings and provide some protection against currency fluctuations by generating revenue in different currencies.
The group has established a multifunctional team to examine expenses across its business functions. Air India and Air India Express, which operate under separate airline operating certificates, are also working on shared corporate functions and other synergies. Gebremariam said the exercise would cover the entire business and focus on efficiency rather than a single cost-cutting measure.
He identified geopolitical disruptions, airspace closures and high fuel prices as short-term challenges for the aviation industry. Air India’s management, he said, must address its immediate financial pressures while continuing to build the airline’s long-term international network.
