MUMBAI: Addressing Air India’s employees for the first time at a company-wide town hall, incoming Chief Executive Officer (CEO) and Managing Director (MD) Tewolde Gebremariam said that achieving sustainable profitability remains a key objective for the airline as it progresses through its transformation journey.
He stated that a combination of external factors has affected the airline's path to breakeven but stressed that Air India cannot afford to lose focus on financial performance.
Gebremariam's focus on profitability comes as the Tata Group-run carrier continues to face financial challenges and is actively seeking additional capital to service its aggressive growth plans, which include an order book of more than 500 aircraft.
Singapore Airlines' (SIA) annual financial statement showed that Air India's losses stood at about $2.8 billion in FY26, its biggest annual loss since the airline was taken over by the Tata Group in 2022. SIA owns a 25.1% stake in the Air India group.
“We must improve both revenue and cost performance. Revenue enhancement initiatives are already under discussion, including opportunities across our international network, commercial activities and cargo business,” said Gebremariam, who will assume the role of CEO & MD of Air India after all necessary regulatory approvals are received.
At the same time, he said cost discipline must become part of the airline's culture. He added that scale is critical in a business characterised by high capital investment, significant fixed costs and intense competition.
“Growth is the oxygen of business. But growth must also be profitable and sustainable. We will pursue expansion in a disciplined manner and ensure our people, fleet and network are ready to support it,” he said.
Gebremariam stated that Air India continues to evaluate opportunities to enhance network efficiency, optimise fleet deployment and rebalance operations to improve long-term competitiveness.
He also stressed that safety would remain the airline's foremost priority and guiding principle. “Everything we do must be safe. Safety is a shared responsibility, and every Air Indian has a role to play. We must continue to foster a culture where people are empowered to speak up, raise concerns and report issues without hesitation,” he added.
The tragic Ahmedabad (Flight AI 171) crash on June 12, 2025, which resulted in 241 people on board and 19 people outside losing their lives, dealt a severe blow to the airline’s safety practices.
The airline recently faced intense scrutiny following a sudden loss of altitude on a Phuket-Delhi flight.
Gebremariam said that India's favourable demographics, strong economic growth, geographic position and large global diaspora provide a unique foundation for Air India's future success.
“These factors give us confidence that if we execute well and remain focused on our customers, Air India can become not only one of the largest airlines in the world, but among the very best,” he added.
At the same time, he noted that the airline is operating in a challenging environment marked by geopolitical developments, airspace restrictions affecting Indian carriers, elevated fuel prices and uncertainty in key international markets.