Air India plans to induct over 100 aircraft within two years to modernize its network. The airline is navigating a complex transformation, having reported a net loss of ₹22,238 crore for FY26. While the carrier focuses on growth and staff incentives, industry observers are closely monitoring its long-term financial recovery and leadership transition.
Air India is moving forward with an ambitious fleet expansion plan, aiming to induct more than 100 new aircraft over the next two years. This update comes as the airline works to modernize its operations and strengthen its market presence under the ownership of Tata Sons, which holds a 73.82% stake alongside Singapore Airlines (25.1%) and employees (1.08%).
The airline, which is not listed on public stock exchanges, is currently in the midst of a multi-year transformation program. Originally envisioned as a five-year turnaround, the timeline is now being viewed as a potential 5-10 year journey by the management. This shift reflects the scale of work required to update the fleet, improve service, and reach sustained profitability.
Financial performance remains a primary point of focus. For the fiscal year 2026, the Air India Group—comprising Air India and Air India Express—reported a combined net loss of ₹22,238 crore. This financial strain highlights the significant costs associated with the airline's aggressive expansion and integration efforts. The company is managing these financial pressures while simultaneously dealing with industry-wide challenges, including volatile jet fuel prices, geopolitical tensions affecting flight paths, and intense competition from domestic rivals like IndiGo.
Leadership stability is another critical factor in this journey. CEO Campbell Wilson is expected to step down in September 2026, and the search for his successor is currently ongoing. Amid these leadership and operational adjustments, the airline has announced that annual salary increments for employees will be implemented from October 1, 2026, alongside a revised pay structure for pilots. These steps are aimed at supporting staff retention and boosting morale as the company pushes ahead with its transformation.
For industry observers and stakeholders, the next phase of this turnaround will be defined by how effectively the airline can integrate its new aircraft while managing operational costs. The modernization of its wide-body fleet, which includes refurbishing older planes, remains a key task. Investors and aviation sector analysts will be monitoring the company's progress on reducing its net losses and successfully managing the leadership transition in the coming months.