Air India fleet expansion and financial challenges

In July 2026, Air India, now owned by the Tata Group, unveiled a major fleet‑modernisation programme, planning to add 50–60 new aircraft – a mix of wide‑body and narrow‑body types – within the next 18 months as part of a larger 600‑aircraft order. The airline’s chief commercial officer highlighted ongoing supply‑chain disruptions, rising fuel costs, air‑space constraints and geopolitical tensions, but said the transformation remained on schedule, including upgrades to Boeing 787 Dreamliners and continued deliveries of Boeing MAX jets.

A week later, the carrier reported a sharp deterioration in its financial performance. Combined with its low‑cost arm Air India Express, the airline posted a net loss of Rs 22,238 crore for FY 2026, more than double the loss a year earlier, while revenue fell about 9 %. The chairman emphasized that a five‑to‑10‑year turnaround would be needed, citing the same supply‑chain and fuel cost pressures that were noted in the fleet‑expansion announcement. The broader Indian aviation sector also saw domestic airfares rise by over 20 % during the period, prompting government measures to stabilise fuel prices and reduce taxes.