Air India has deferred annual salary increments for employees by at least one quarter as the airline grapples with rising fuel costs, geopolitical instability and operational disruptions impacting the aviation sector globally.
The announcement was made during an internal townhall attended by Campbell Wilson, chief executive, Sanjay Sharma, chief financial officer and Ravindra Kumar GP, chief human resources officer, according to reports citing company sources.
While informing employees about the delayed increments, the airline’s leadership also clarified that layoffs are not currently being planned. The company said variable pay payouts for the previous financial year would continue as scheduled, along with employee promotions.
The move comes at a difficult time for airlines worldwide as escalating tensions in West Asia continue to push up aviation turbine fuel prices.
During the townhall, management reportedly warned that the current financial year could become extremely challenging if geopolitical conditions do not improve. Employees were urged to reduce discretionary spending, defer non-essential expenditure and focus on eliminating operational wastage across departments.
Despite the tighter financial controls, Air India said it remains committed to improving customer experience and strengthening its long-term operational network as part of its ongoing transformation under the Tata Group.
The townhall also highlighted the airline’s internal disciplinary actions over the past three years. Wilson reportedly informed employees that more than 1,000 staff members had been terminated for ethical violations since the Tata Group acquired the airline.
The violations included misuse of employee travel privileges, allowing excess baggage without proper charges, smuggling items off aircraft and other compliance-related breaches. The airline had earlier identified irregularities involving thousands of employees linked to misuse of its Employee Leisure Travel policy.
