Air India CEO flags external headwinds, urges “relentless focus on costs”; no layoffs anticipated, say sources

Air India CEO Campbell Wilson on Friday addressed employees during a company-wide town hall, warning that mounting external pressures on the aviation sector would require strict cost discipline, while assuring staff that the airline does not anticipate layoffs, according to sources.

The town hall was attended by Chief Human Resources Officer Ravindra Kumar GP and Chief Financial Officer Sanjay Sharma.

According to sources, Wilson highlighted several global and regional challenges affecting the airline industry, including the continued closure of Pakistan’s airspace, geopolitical tensions across West Asia, the depreciation of the Indian rupee, and a steep rise in aviation turbine fuel (ATF) prices.

These factors have adversely affected travel sentiment and consumer confidence, he said, adding that jet fuel prices have risen by '2.5×-3×,' significantly increasing operating costs, particularly on international routes.

“Relentless focus on costs”, says Air India CEO Wilson

Emphasising the need for tighter financial discipline, Wilson told employees, “We need to focus relentlessly on our costs in these tough times.”

He urged teams across the airline to suspend discretionary spending, renegotiate vendor rates wherever possible, and defer non-critical expenditure.

“There must be a laser sharp focus on eliminating wastage and leakages,” he said, while stressing that Air India would continue efforts to improve customer experience despite the cost pressures.

No layoffs, salary increments deferred

CHRO Ravindra Kumar GP said the airline would proceed with variable pay payouts for the previous financial year and continue with planned promotions.

“We don’t anticipate layoffs,” he told employees. However, he added that annual salary increments would be deferred by at least one quarter due to the uncertain economic environment.

Financial performance and outlook

CFO Sanjay Sharma said Air India had witnessed strong financial momentum through FY25, driven by revenue growth and fleet expansion, but acknowledged that FY26 had begun with slower revenue growth amid rising global uncertainties.

He noted that Air India recorded an approximate 40 per cent compound annual growth rate (CAGR) in revenue between 2022—when the airline was privatised—and 2025.

Despite the challenges, Wilson reiterated that the airline remained focused on strengthening its long-term operational and network capabilities.

Fleet modernisation and network expansion

In FY26, Air India completed the retrofit of its legacy narrowbody fleet and began upgrades of its widebody aircraft, with the first upgraded aircraft already back in service.

The airline also optimised network deployment, expanded its India-Europe and India-Far East operations, and increased synergies with Air India Express by reducing overlapping routes and improving network efficiency.

Additionally, Air India expanded its Southeast Asia feeder network from two destinations to seven.

Operational performance and customer experience

Operational performance also showed improvement. Domestic on-time performance (OTP) rose from 73 per cent to 76 per cent in FY26, while international OTP remained stable despite external disruptions, aided by improved fleet reliability.

The airline’s customer Net Promoter Score (NPS) improved significantly, rising to 30 in March 2026 from 20 in April 2025 and -19 in 2023, reflecting ongoing product upgrades and efforts to enhance passenger experience.