Air India Defers Employee Salary Increments by One Quarter Amid Rising Fuel Costs

Air India has deferred annual salary increments for employees by at least one quarter as the airline faces rising fuel costs and broader operational pressures linked to geopolitical disruptions.
The decision was communicated during an internal townhall attended by Chief Executive Officer Campbell Wilson, Chief Financial Officer Sanjay Sharma and Chief Human Resources Officer Ravindra Kumar GP, according to multiple media reports.
During the meeting, airline management told employees that layoffs are not currently being planned. The company also said performance-linked variable pay for the previous financial year and employee promotions would continue as scheduled.
Air India’s management reportedly cited increasing aviation turbine fuel prices, airspace restrictions and ongoing geopolitical tensions in West Asia as major factors affecting operating costs.
Employees were also asked to reduce discretionary spending, defer non-essential expenses and focus on reducing operational wastage across departments.
The airline said it remains focused on improving customer experience and continuing its long-term transformation efforts under the Tata Group.
Separately, management highlighted disciplinary actions taken since the Tata Group acquired Air India. According to reports, more than 1,000 employees have been terminated over the past three years for ethical and compliance violations, including misuse of travel privileges and other policy breaches.
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