Air India Express Poised for First Profit Post-Tata Takeover
Air India Express, the low-cost arm of Air India, is projected to post its first operating profit since being acquired by the Tata Group in 2022. The forecast, covering the second half of this fiscal year ending in March, comes amid increased capacity and a growing market share, offering a positive signal for the Air India Group, which continues to face challenges due to an airspace ban by Pakistan.
The airline is investing over $70 million in refurbishing its fleet of more than 100 Boeing and Airbus narrowbody jets. Executives have also outlined ambitious plans to double capacity over the next four to five years, aiming for a fleet of more than 200 aircraft, alongside adding 30 new Boeing 737 MAX jets, according to statements made last October.
Analysts and government officials are closely monitoring the turnaround of both Air India Express and its full-service parent. While Air India navigates a multi-billion-dollar restructuring hindered by jet delivery delays, its financial strain has also impacted Singapore Airlines, which holds a 25% stake in the carrier.
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