Tata Sons’ low-cost carrier Air India Express looks ahead to a good FY26

Despite supply chain challenges, Tata Sons-owned low-cost carrier (LCC) Air India Express increased its fleet capacity by 56% in FY25 and foresees a good FY26. In FY25, the AI Express fleet rapidly increased to 103 aircraft from 66. The induction of 37 aircraft in FY25 was through a mix of new and some old ones from Air India.

Speaking at a media roundtable held at its headquarters in Gurugram, AI Express chief executive officer (CEO) Aloke Singh said while the new fiscal year will see the induction of fewer aircraft, he is confident the airline will stay ahead of demand. “Despite the supply chain challenges, we have seen significant capacity coming in. The capacity that we expect coming into the market not just over the next year but over the next several years, in all probability, we will stay ahead of the demand,” said Singh.

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Speaking of capacity addition for the industry, he feels that, in the short term, a perfect correlation between demand and capacity might not be seen, but this is expected to change in the long term.

While Tata Sons’ LCC is expected to induct only 15 aircraft in the new fiscal year, the airline is working on a long-term fleet strategy. Of the 15 aircraft the airline is expected to induct, 11 will be new aircraft, and four will be transferred from Air India. “There is growth in capacity, there is growth in demand,” added the AI Express CEO.

Plans for the new fiscal

Tata Sons’ LCC has set a target to fly 30 million passengers in FY26. This is a 50% jump from FY25, when it flew 20 million passengers. The airline will also see its daily flights cross the 500 mark from the beginning of FY26. In FY25, the airline had 485 daily flights, which will now rise to over 525.

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As per the summer schedule 2025, Air India Express will see a 40% jump in weekly departures, with 3,684 departures versus 2,623 departures in the previous year’s summer schedule. Domestic weekly departures will jump 50% to 2,727 from 1,825. International weekly departures will grow 20% to 957 from 798. AI Express will expand its domestic presence by launching 15 new routes in FY26.

Responding to Mint‘s question on what the tailwinds and headwinds in the new fiscal could be, Aloke Singh said, “The two new airports in Navi Mumbai will be a game changer. These airports will become hubs, and they’re going to see an enormous amount of capacity, and the capacity creates its demand, so this will be a great tailwind.”

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He said that the geopolitical situation and crude oil prices could be headwinds. Both Navi Mumbai International Airport and Noida International Airport are expected to start operations in the new fiscal year.

The Air India Express CEO also said that from the beginning of the new fiscal, the airline will be on the path of becoming an ‘all-economy’ airline. Many Boeing 737-8 aircraft in the airline’s fleet also feature business-class seats. “Certain 737-8 aircraft will be reconfigured and converted into all economy.”

These are the ‘white tail aircraft’, which were intended to be delivered to one airline but were taken by another.