Operating profit refers to the profit a company makes from its core business operations — in this case, flying passengers — after accounting for operating costs such as fuel, staff salaries, aircraft leases and maintenance, but before interest and tax expenses.
The projection was shared at the airline’s monthly town hall held at its headquarters in Gurugram, attended by Nipun Aggarwal, chairman of Air India Express, and Aloke Singh, managing director, Business Standard has learnt.
While
Air India Express is projecting an operating profit in H2, its parent company, Air India, is reportedly expecting to post sizeable losses for the full FY26 due to the AI171 crash last year and ongoing airspace restrictions.
The Air India Express management said the expected operating profit in the second half of the financial year is the outcome of several initiatives undertaken during FY26. These include improved unit economics — reflecting better revenue and cost performance per seat flown — tighter control over expenses and stronger operational execution, even as the airline continues to face broader industry challenges such as high fuel prices and supply constraints.
According to the management, Air India Express’s focused commercial strategy, more efficient deployment of aircraft capacity and an improved customer offering have begun delivering results.
During the interaction, the management said the airline has grown rapidly since privatisation. Available seat kilometres (ASKs) — a standard measure of airline capacity — have nearly doubled, while market share has tripled over this period.
Looking ahead, Air India Express is targeting three-fold growth by FY31 and aims to command a 25 per cent market share with a fleet of around 300 aircraft.
The management reiterated that the airline is positioning itself as a “value carrier”, sitting between a full-service and a low-cost carrier, offering a more premium and differentiated experience. As part of this strategy, it is investing over $70 million in a retrofit programme to upgrade aircraft interiors and onboard products.
The airline has also significantly improved its customer experience, with its net promoter score — a measure of customer satisfaction — more than tripling to an all-time high, the management said.
Operationally, Air India Express has recorded the highest on-time performance in India over the past two months and has ranked among the top performers multiple times this financial year.
In terms of network scale, Air India Express is now the second-largest airline in India by domestic routes, domestic stations and international routes, with an almost even split between international and domestic operations.
 "Air India Express")