Air India will resume its annual salary revision cycle from October 1, after deferring increments amid operational and financial pressures linked to the Middle East crisis.
Campbell Wilson, CEO and managing director, announced the decision during a town hall with employees, according to NDTV. The airline had postponed its annual increment cycle as airspace disruptions, higher fuel costs and currency pressures weighed on operations and finances.
Despite the challenges, Wilson said profitability remains a key focus while the airline continues to invest in fleet modernisation and its broader transformation programme.
The return of annual salary revisions comes alongside continued expansion and operational improvements at Air India. The airline group plans to induct more than 100 aircraft during 2027 and 2028, while work on retrofitting its existing fleet is also progressing.
Three Boeing 787-9 aircraft have been inducted in 2026, while two Airbus A350-1000 aircraft are expected later this year. Three retrofitted Boeing 787-8 aircraft have already entered service, with four more expected by the end of 2026.
The airline has also reported improvements in customer sentiment and operational performance. Its fleet-wide Net Promoter Score has risen from -35 in FY23 to +37 in FY27 so far, while the NPS for retrofitted Boeing 787-8 aircraft improved from -31 to +43.
Air India recorded its highest-ever DGCA on-time performance of 91.6 per cent in June, with year-to-date OTP reaching 85 per cent, compared with 76 per cent in FY26. The airline also reported a 99.7 per cent completion factor and a nearly 60 per cent reduction in long delays.
The reinstatement of the salary revision cycle signals a renewed focus on workforce investment as Air India balances employee compensation with fleet renewal, operational improvements and its wider transformation agenda.
