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Air India says turnaround will take 5–10 years as FY26 revenue and losses remain under pressure
Our read
Air India’s improving customer experience will strengthen its premium and international revenue mix, but aircraft constraints and transformation spending will likely keep profitability out of reach for several more years.
For operators
Air India’s rising NPS shows the service reset is gaining traction, but management must convert fleet, systems and talent investments into more reliable operations and revenue recovery over the next several years.
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Quarterly revenue growth versus prior year and sequential load-factor or yield trends.
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The report,
Tata Sons says Air India’s turnaround will take 5-10 years amid fleet, systems and talent overhaul. FY26 revenue fell to Rs 71,870 crore and losses remained substantial, while customer NPS improved sharply. Wide-body aircraft refurbishment is targeted for completion by FY28.
Reported figures
From the report. Source details below
| Air India revenue previous fiscal: | Rs 78,636 crore |
|---|---|
| Air India loss after tax FY2025-26: | Rs 15,367.75 crore |
| Air India Express loss FY2025-26: | Rs 6,767.29 crore |
| Singapore Airlines stake in Air India Group: | 25.1% |
| NPS: | -35 in FY23 to +42 in June 2026 |
Why it matters to operators
Air India’s 5–10-year transformation timeline and pending wide-body refurbishment program make targeted partnerships, technology alliances and selective asset integration more relevant than near-term deal-driven expansion.
What to watch next
- Loss trajectory, cash burn, debt or lease liabilities, and evidence of additional Tata capital support.
- On-time performance, cancellation rates, baggage performance and whether NPS remains above 40.
- Delivery timing for new aircraft and progress on wide-body refurbishment milestones.
- International market-share gains, corporate-account wins and premium-cabin occupancy.
- Merger and systems-integration milestones, including workforce, reservation and loyalty-platform execution.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Prioritize profitable international routes and reduce structurally weak capacity rather than pursuing market share at any cost.
- Accelerate wide-body refurbishment, cabin-consistency upgrades and operational reliability improvements ahead of FY28.
- Use Tata ecosystem partnerships to deepen loyalty, corporate travel contracts, payments and cross-selling.
- Tighten procurement, maintenance, fleet-utilization and staffing productivity to convert NPS gains into lower unit costs.
- Secure aircraft, engine and maintenance capacity early to limit disruption from global aerospace supply constraints.
The counter-case
The case against this reading — not reported by the source.
A 5–10 year turnaround horizon risks becoming a rolling excuse for continued cash burn. Despite better NPS, Air India is still losing Rs 15,367.75 crore on Rs 71,870 crore of FY26 revenue, while revenue has declined year on year. Fleet renewal, cabin refurbishment, IT replacement, talent upgrades and network restructuring all require heavy capital and flawless execution; delays or cost overruns could deepen losses before benefits arrive. Improved customer sentiment may not translate into sustainable yields, especially in a price-sensitive domestic market and on international routes facing intense Gulf-carrier competition.
The source
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Confirmed by Mint, Business Standard, NDTV Profit, Financial Express, Outlook Business
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