After cutting losses in 2024, Air India aims to become profitable next year

Air India will take key initiatives in the coming year to ensure that the now loss-making airline turns profitable, its chief Campbell Wilson said on Friday (December 27).

In a message to the staff, Wilson said 2025 will see progress on many initiatives such as refitting wide body and remaining narrow body aircraft with new seats and services.

After taking over the loss-making Air India in January 2022, Tata Group has been working on an ambitious transformation plan to turn around the airline. Air India recently placed orders for 100 more aircraft.

Also read: End of an era | Vistara’s legacy faces turbulent integration as it joins Air India’s wings

Mergers strengthen airlines

Wilson said the completion of the mergers of Air India Express and AirAsia India and of Vistara with Air India had made the airline the fourth largest business, by revenue, in the Tata group.

Air India group operates 300 aircraft, flying more than 60 million customers a year to more than 100 destinations in India and around the world.

Further, Air India’s service standards will be elevated, raising the bar on what the airline considered was 'good', and more consistently delivering to those new expectations, the chief added.

Tightening practices, processes

Refitting of narrow body aircraft has commenced while that of legacy wide body planes is expected to start in 2025.

Also read: Air India places order for 100 more Airbus aircraft

Wilson, the CEO and managing director of Air India, said the airline will strengthen and tighten its practices and processes so that “we are not just consistent, we are also efficient and, ultimately, profitable”.

In 2023-24, Air India cut its losses to Rs 4,444.10 crore from Rs 11,387.96 crore in the previous fiscal. Its turnover rose 23.69 per cent to Rs 38,812 crore in the last financial year.

Earlier in December, Air India placed an order for 100 more Airbus planes comprising 10 wide body A350s and 90 narrow body A320s.