Air India Group is planning to add more than 100 aircraft in 2027 and 2028 as it accelerates its fleet expansion and transformation programme. The group, comprising Air India and Air India Express, currently operates nearly 300 aircraft.
Outgoing Air India CEO Campbell Wilson shared the expansion plans with employees at a townhall on Thursday. The airline is simultaneously upgrading its existing fleet through a $400 million retrofit programme, with 16 Boeing 787-8 Dreamliners scheduled for refurbishment in 2027.
Air India steps up fleet expansion
Air India has already inducted three Boeing 787-9 aircraft this year and is expected to receive two Airbus A350-1000 aircraft later in 2026. Three upgraded Boeing 787-8 aircraft have returned to service this year, while another four are expected to complete the retrofit process before the end of 2026.
The airline currently operates more than 185 aircraft, including Boeing 787s, Boeing 777-300 ERs and Airbus A350-900s. The planned additions are expected to increase capacity while supporting improvements in passenger experience.
Higher costs pose operational challenges
The fleet expansion comes against a difficult operating backdrop. Wilson said airlines are facing pressure from fuel price volatility, geopolitical uncertainty and disruptions to airspace.
The closure of Pakistani airspace has extended flight times on some Europe and North America routes by as much as three hours. Disruptions related to the Iran conflict have also increased fuel and operating expenses, while a weaker rupee and softer India-US travel demand have added to industry pressures.
Despite these challenges, Air India has reported operational improvements. Its on-time performance reached 91.6% in June, while widebody technical dispatch reliability rose to 97.4%.
The airline remains focused on profitability as it invests in aircraft, fleet upgrades and operations. The expansion will coincide with a leadership transition, with former Ethiopian Airlines Group chief Tewolde Gebremariam set to succeed Wilson as CEO and managing director.
