Air India is reassessing its growth plans after Tata Group reportedly instructed the airline to focus on reducing losses and improving operational stability. The move marks a shift from the carrier's aggressive expansion strategy that had been underway since Tata Group took ownership of the airline in 2022.

According to people familiar with the matter, Air India is exploring several cost-control measures, including discussions with Airbus and Boeing to defer deliveries of aircraft from its large order book. Delaying aircraft deliveries could help the airline postpone substantial payments that are typically due when planes are handed over.

The airline is also reviewing its plans to launch services on new domestic and international routes. Expansion at certain airports, including the upcoming Noida International Airport, may be delayed as part of the broader strategy to manage costs and improve financial performance.

The change in approach comes after a challenging period for the airline. A fatal crash last year, airspace restrictions following Pakistan's closure of its airspace to Indian carriers, and disruptions linked to the conflict in Iran have all added pressure on operations. These developments have resulted in longer flight routes, higher fuel expenses, and increased operating costs.

Air India has also faced challenges from the weak Indian rupee, which has increased expenses as a significant portion of airline costs are denominated in US dollars.

The airline's financial performance remains a concern. Sources indicate that Air India has accumulated losses of more than ₹55,000 crore since 2022, while annual losses have reportedly reached around $3 billion (approximately ₹28,500 crore). The issue has become a key area of focus for the board of Tata Trusts, which controls Tata Sons, the majority owner of Air India.

Despite these challenges, Air India has continued to pursue one of the largest fleet modernisation programmes in the aviation industry. Between 2023 and 2025, the airline placed orders for around 600 aircraft from Airbus and Boeing as part of its long-term growth strategy. Most of these aircraft are expected to be delivered during 2027 and 2028.

Responding to reports, an Air India spokesperson described the claims as highly speculative and stated that the airline remains committed to fleet modernisation and its long-term transformation programme. Tata Group and Airbus did not comment on the matter, while Boeing declined to provide a statement.

The airline currently operates both the full-service Air India brand and low-cost carrier Air India Express. While passenger demand and revenues have benefited from India's growing economy and rising travel demand, the airline continues to face the challenge of balancing expansion with financial sustainability.

Singapore Airlines, which acquired a 25.1% stake in Air India in 2024, remains a strategic partner as the airline continues its transformation journey.