Air India Plans Over 100 New Planes Amid Rising Costs And Flight Disruptions

Air India Group plans to add more than 100 new aircraft over 2027 and 2028 as the airline continues its fleet overhaul and transformation, even as it faces higher operating costs and a difficult international operating environment.

Outgoing Air India CEO Campbell Wilson shared the plans with employees at a townhall on Thursday, according to PTI. The group, which includes Air India and low-cost carrier Air India Express, currently has nearly 300 aircraft.

The airline is also continuing its legacy fleet upgrade programme. Wilson said the $400 million retrofit programme is on track, with 16 Boeing 787-8 aircraft set to be retrofitted in 2027, according to The Economic Times (ET).

Fleet Expansion Gains Pace

Air India has already inducted three new Boeing 787-9 aircraft this year and is expected to receive two Airbus A350-1000s later in 2026, ET reported. Three retrofitted Boeing 787-8 Dreamliners have also returned to service this year.

Another four retrofitted 787-8 aircraft are expected to return before the end of 2026. The airline expects the retrofit of all 16 aircraft to be nearly complete by the end of 2027, according to the publication.

PTI reported that Air India currently has more than 185 aircraft, including 35 Boeing 787s, 19 Boeing 777-300 ERs and six A350-900s. The new aircraft will add to the wider group fleet as Air India seeks to improve its capacity and customer experience.

Costs And Disruptions Remain A Challenge

The fleet expansion comes as Air India continues to deal with higher operating costs. Wilson told employees that airlines have faced significant external pressures, including fuel price volatility, geopolitical uncertainty and airspace disruptions, according to the news agency.

The closure of Pakistani airspace has increased flight times for Indian carriers by up to three hours on some Europe and North America routes. Disruptions linked to the Iran conflict have also added to fuel and operating costs, while a weaker rupee and softer India-US demand have weighed on the sector, ET reported.

Despite these pressures, Air India has reported improvement in its operations. Its on-time performance reached 91.6% in June, its highest level recorded by the aviation regulator, while widebody technical dispatch reliability rose to 97.4%, according to the publication.

The airline, however, remains focused on returning to profitability as it invests heavily in new aircraft, fleet upgrades and operations. The expansion will also come amid a leadership transition, with former Ethiopian Airlines Group chief Tewolde Gebremariam set to take over as CEO and managing director from Wilson.