Air India CEO targets lower costs, higher passenger yields to steer airline towards profitability

New Delhi: Air India is initiating steps to cut operating costs and boost passenger yields as part of its strategy to turn profitable, CEO Tewolde Gebremariam said Tuesday.

Gebremariam, a former Ethiopian Airlines executive who took charge of the Tata Group-owned carrier this September, said achieving a financial turnaround is a long-term project, underscoring that he has the full backing of its shareholders Tata Sons and Singapore Airlines who are focused on its long-term strategy rather than short-term financial performance.

"I am more impatient than the shareholders about profitability," Gebremariam said, speaking at the Aviation India and South Asia summit. Gebremariam described Air India as a strong national brand with an opportunity to expand its presence among Indian travellers worldwide.


Air India and unit Air India Express incurred a consolidated net loss of ₹22,238 crore in FY26, more than double the ₹10,859 crore loss in the previous fiscal year.

Acknowledging that the airline's cost per available seat kilometre (CASK) is currently higher than revenue per available seat kilometre (RASK), Gebremariam said, "Profitability is an issue." CASK and RASK are industry terms to express per unit cost and revenue earning of an airline. "We need to work on CASK," he said. "CASK for us is greater than RASK. Need to improve RASK."

Air India plans to reduce unit costs to at least industry levels while reworking its network to improve revenue generation. This includes restructuring parts of its Delhi network, increasing flights to Europe and North America from Mumbai and exploring Bengaluru as a third hub.

Gebremariam highlighted that the carrier is currently facing losses but has significant opportunities for growth, adding that much of the foundational work required for its transformation has been completed.