NEW DELHI — Air India’s board has discussed a series of cost-cutting measures, including possible employee furloughs and the deferment of performance-linked bonuses, as the airline faces rising losses and operating pressure linked to the conflict in West Asia.
The Tata Group-backed airline’s board meeting was held at its headquarters in Gurugram and lasted more than three hours, according to multiple reports. Discussions focused on Air India’s financial position, cost-rationalization efforts and broader operational challenges.
The airline is evaluating several austerity measures to control expenses as higher jet fuel prices and airspace restrictions tied to geopolitical tensions continue to affect operations.
Among the options discussed were temporary unpaid leave for employees and delaying bonus payments, which are part of employees’ cost-to-company structure.
Air India has faced a sharp increase in operating expenses in recent months because of longer flying routes and elevated fuel costs caused by the regional conflict.
The board also reviewed the airline’s financial performance for 2025-26 and discussed leadership transition plans, including the selection of a new CEO.
Air India CEO and Managing Director Campbell Wilson is expected to step down later this year and is scheduled to address employees at a town hall meeting Friday.
The Air India Group is estimated to have posted losses of more than Rs 22,000 crore for the financial year ended March 2026.
In April, Air India Express announced the restoration of flights to Qatar and Bahrain and expanded its network across key Gulf destinations, including the UAE, Oman and Saudi Arabia, effective April 30, 2026.
The conflict in West Asia has also affected the broader aviation sector by disrupting flight schedules and increasing operating costs for airlines worldwide. Media reports said Dubai International Airport saw a sharp decline in passenger traffic in March as regional disruptions weighed on travel. (Source: IANS)
