The Chief Executive Officer and Managing Director of Air India, Towelde Gebremariam, stated on Tuesday that the airline aims to acquire more widebody aircraft to expand its international operations while working to reduce high operating costs and return to profitability.
Gebremariam spoke at the India and South Asia Aviation Summit. He reported that despite financial losses incurred, Air India will return to profitability 'very soon.' In fiscal year 26, Air India and its subsidiary Air India Express recorded a consolidated net loss of 22,238 crore rupees, more than double the loss of 10,859 crore rupees registered in fiscal year 25.
He noted that the shareholders of Air India Group—Tata Group and Singapore Airlines—have given him 'full support' and maintain a 'long-term' view, but he himself is 'more impatient for profitability than the shareholders' and intends to 'make Air India great again.'
Since privatization in January 2022, Air India Group has placed firm orders for 600 aircraft with Airbus and Boeing. These orders include 80 widebody jets, of which 50 are Airbus A350s, 20 are Boeing 787 Dreamliners, and 10 are Boeing 777Xs. The remaining 520 units are narrowbody aircraft primarily used for domestic and short-haul international flights.
Gebremariam emphasized that 'we want more widebody aircraft... the opportunity is huge.' The airline has negotiated with both Airbus and Boeing. Widebody aircraft are larger, two-aisle aircraft typically used for long-haul international flights.
Regarding immediate financial priorities, Gebremariam stated that reducing operating costs is crucial. He pointed out that 'the cost per available seat kilometer (CASK) is a serious issue for us. It is too high and must be reduced.' The CASK metric reflects the amount the airline spends to operate each seat per kilometer flown; a lower CASK allows the company to fly cheaper.
He added that 'we must look at all aspects of the business from the perspective of unit costs compared to the industry. And we are working to reduce these unit costs, at least to industry levels, and possibly higher.'
Furthermore, the airline is rebalancing its network to mitigate the impact of airspace restrictions. Flights between Europe and the US have been more affected by the closure of Pakistani airspace, with Delhi feeling a greater impact than Mumbai. Air India will continue to operate flights from Delhi but will shift most operations to Europe and the US to Mumbai. The possibility of using Bangalore as an additional hub is also being explored.
Nevertheless, Delhi will retain its importance for the airline's Eastern and Southeast network, which has not been as severely impacted by airspace restrictions. Gebremariam reported that the airline will continue to develop these markets from Delhi while adjusting its European and American operations.
Air India is also strengthening its international sales departments and increasing sales in foreign markets. According to Gebremariam, this will help the airline balance international sales with bookings made in India and manage currency fluctuations. Selling more tickets in external markets can help the airline earn revenue in different currencies, providing some protection against adverse exchange rate movements.
As part of cost reduction, the airline has already formed a cross-functional group to study costs across various business functions. It is also working to improve coordination between Air India and Air India Express, which operate under separate Air Operator Certificates (AOCs). Both airlines aim to increase efficiency through shared corporate functions and other synergies.
Gebremariam noted that the cost-cutting process spans all areas of the business. He stressed that improving efficiency is the central goal, not betting on any single cost-reduction initiative.
He characterized geopolitical turmoil, airspace closures, and high fuel prices as short-term challenges for the aviation industry. However, Pakistan's airspace restrictions present an additional difficulty for Indian carriers like Air India. The CEO stated that the airline needs to focus on immediate financial problems while continuing to build long-term growth. He concluded: 'One eye is completely focused on today. We must do something today to handle the challenges we face. And the second eye is completely focused on the future.'



