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Air India weighs furloughs, bonus delays amid mounting losses: Report
Air India is weighing furloughs and bonus delays as the West Asia conflict drives projected losses to Rs 22,000 crore. CEO Campbell Wilson will address the Air India staff at a town hall today.
The airline said it will continue to operate more than 1,200 international flights every month.
(File photo)
Air India’s board on Thursday reviewed a range of cost-cutting options, including possible furloughs, as the loss-making carrier grapples with mounting challenges, mainly triggered by the West Asia conflict. The meeting was held at the airline’s headquarters in Gurugram, Haryana, and lasted for more than three hours after beginning at around 11.30 AM.
According to sources news agency PTI spoke to, the board discussed several steps aimed at reducing costs. These measures could include placing employees on furlough and delaying bonus payouts. At Air India, bonuses are performance-linked and form part of employees’ overall cost-to-company package. Furloughs typically involve staff being placed on temporary unpaid leave during periods of financial stress.
Air India CEO and Managing Director Campbell Wilson is scheduled to address employees at a ‘town hall’ meeting on Friday, May 8.
Sources had earlier indicated that the airline’s financial performance for 2025-26, cost-reduction strategies and the search for a new chief executive were expected to figure prominently in the discussions.
Wilson is set to step down later this year.
The airline’s operations have been hit by airspace restrictions and rising aviation fuel prices stemming from the West Asia conflict, adding pressure at a time when Air India is pursuing a major transformation programme. The resulting spike in operational expenses has prompted the carrier to examine multiple cost-control measures.
The Air India board is chaired by Tata Sons Chairman N Chandrasekaran. Other board members include Wilson, Singapore Airlines CEO Goh Choon Phong, Sanjiv Mehta, Alice Vaidyan, PR Ramesh and PB Balaji.
Air India Group, which includes Air India and Air India Express, is estimated to have posted losses exceeding Rs 22,000 crore for the financial year ending March 2026, as per PTI.
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