Tata Sons’ low-cost airline Air India Express offers a good FY26

Despite supply chain challenges, Tata’s son owned low-cost carrier (LCC) Air India Express increased its fleet’s capacity by 56% in fiscal 25 and forecasts good for fiscal 26. In fiscal 25, the AI ​​Express fleet grew rapidly from 66 to 103 aircraft. The 37 aircraft in FY25 were a mix of new and some old aircraft from Air India.

AI Express CEO (CEO) Aloke Singh said at a media roundtable held at its Gurugram-based headquarters that while the new fiscal year will see the appeal of fewer aircraft, he believes airlines will keep demand higher. “We have seen tremendous capabilities despite supply chain challenges. We are expecting the ability to enter the market not only next year but in the next few years, but we are likely to remain ahead of the pack,” Singh said.

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Speaking of the industry’s increased capabilities, he believes that the perfect correlation between demand and capability may not be seen in the short term, but in the long run, this correlation will change.

While Tata’s son’s LCC is expected to recruit only 15 aircraft in the new fiscal year, the airline is developing a long-term fleet strategy. Of the 15 aircraft, the airline is expected to recruit, with 11 new aircraft to be new, and four will be transferred from Air India. “Capacity grows, demand grows.” The CEO of AI Express added: “

New finance plan

Tata’s son’s LCC sets a goal to drive 30 million passengers in fiscal 26. This is 50% of the 20 million passengers flying from FY25. The airline will also see its daily flights cross the 500 mark from the start of fiscal 26. In fiscal 25, the airline had 485 flights a day and will now rise to more than 525 flights.

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According to the 2025 summer schedule, Air India will see a 40% increase in weekly departures, with 3,684 departures vs 2,623 departures in the previous year’s summer schedule. From 1825, the domestic weekly departure rate will jump to 2,727. From 798, the international weekly departure will grow by 20% to 957. AI Express will expand its domestic business by launching 15 new routes in FY26.

Response MintAloke Singh said about what the headwinds and headwinds of the new fiscal could be, Aloke Singh said: “Two new airports in Navi Mumbai will be game-changing. These airports will be hubs, they will see a lot of capabilities and the ability creates demand, so it will be a good tail wing.”

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He said geopolitical conditions and crude oil prices could bring headwinds. Navi Mumbai International Airport and Noida International Airport are expected to begin operations in the new financial year.

The CEO of Air India also said that starting with the new finances, the airline will become the road for the “all-economy” airline. Many of the Boeing 737-8 aircraft in the airline fleet also feature business-grade seats. “Some 737-8 aircraft will be reconfigured and converted into all economies.”

These are “white tail aircraft” designed to ship them to one airline but by another.