After undergoing a series of changes over the past three years following its takeover by the Tata Group, Air India is targeting to become operationally profitable in the coming period, a top company official said on Friday.
Operating a fleet of 300 aircraft across Air India and Air India Express, clocking over 60 million flyers annually, the airline business is already the fourth largest revenue generator for the Tata Group.
Addressing Air India’s employees, Campbell Wilson, managing director and CEO, said, “2025 will see progress on refitting our widebody and remaining narrowbody aircraft with new seats and services. We will also strengthen and tighten our practices and processes so that we are not just consistent, we are also efficient and, ultimately, profitable.”
In its first full year under its new owner, the former flag carrier more than halved its net loss during FY24 to Rs 4,444 crore, buoyed by growth in capacity and improved occupancies of flights. In FY23, the airline had recorded a loss of Rs 11,388 crore.
Air India recorded its highest consolidated annual operating revenues of Rs 51,365 crore, up 25% driven by growth in capacity to 105,059 million ASKM (available seat kilometers), up 21% and improvement in passenger load factor to 85% (from 82%) during FY24.
In November, Tata Sons successfully merged Singapore Airlines-trained Vistara into Air India to create the country’s largest and only full-service carrier. Previously, it had merged AirAsia India into Air India Express to make the latter the low-cost carrier under its wings. The Air India group controls 27% of India’s domestic aviation market across two airlines.
While induction of new aircraft is progressing steadily for Air India, there are a total of 529 aircraft pending for delivery. Of these, 344 are due from Airbus, including the 100 it ordered earlier in December and 185 are due from Boeing.
“With Air India, Vistara, Air India Express and AirAsia now under one roof, and all the uncertainties and challenges of merger receding into history, we must now look forward, as a united team, to a common destination of being a world class, global airline group with an Indian heart,” Wilson added.
Air India has set up a 600,000 sq ft integrated aviation training academy, the largest in South Asia, in Gurugram.
It has also announced a new flying school at Amravati and maintenance training school at Bengaluru. It also entered into an agreement with Bengaluru International Airport (BIAL) to develop BIAL as a premier aviation hub for southern India.