Air India has decided to defer annual employee increments by at least one quarter as the airline faces mounting financial pressure amid a challenging global economic environment. The announcement was made during a meeting addressed by CEO Campbell Wilson, Chief Human Resources Officer Ravindra Kumar GP, and Chief Finance Officer Sanjay Sharma.
Wilson clarified that while annual increments would be delayed, the airline does not currently plan any layoffs. He assured employees that performance-related variable pay for the previous year would still be paid. According to Wilson, the company has budgeted for salary increments and may reconsider them later depending on how the economic situation evolves.
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The airline cited several external factors affecting operations, including the continued closure of Pakistani airspace, geopolitical tensions across West Asia, the sharp depreciation of the rupee, and a major rise in jet fuel prices. Wilson said fuel costs had nearly tripled in recent months, adding significant pressure on the airline’s finances.
Air India also plans to reduce discretionary spending, renegotiate vendor rates, and postpone non-essential expenses as part of broader cost-control measures. Wilson urged employees to maintain a strong focus on efficiency and eliminating wastage across operations.
Despite the challenges, the airline said it remains focused on long-term growth through fleet expansion, adoption of new technology, and induction of fuel-efficient aircraft. Sharma added that while fiscal year 2025 saw strong revenue growth, the current financial year has become more uncertain due to global instability and softer demand conditions.
