Air India considers furloughs, bonus delays as losses hit ₹22,000cr
What's the story
Air India's board has discussed a range of cost-cutting measures, including potential employee furloughs and postponement of bonus payouts, as per a PTI report. The meeting was held at the airline's Gurugram headquarters and lasted over three hours. The discussions were primarily focused on ways to mitigate the carrier's mounting financial challenges, largely triggered by the ongoing West Asia conflict.
Upcoming meeting
Town hall meeting to address employee concerns
Air India CEO Campbell Wilson will address employees at a 'town hall' meeting today. The airline's financial performance for 2025-26, cost-reduction strategies, and the search for a new chief executive are expected to be key topics of discussion. Wilson is set to step down later this year.
Financial strain
Impact of West Asia conflict on Air India's operations
Air India's operations have been affected by airspace restrictions and rising aviation fuel prices due to the West Asia conflict. This has increased operational costs, prompting the airline to explore various cost-control measures. The board meeting was chaired by Tata Sons Chairman N Chandrasekaran, with other members including Wilson, Singapore Airlines CEO Goh Choon Phong, Sanjiv Mehta, Alice Vaidyan, PR Ramesh and PB Balaji.
Financial outlook
Air India's estimated losses for FY26
The Air India Group, which includes Air India and Air India Express, is estimated to have incurred losses of over ₹22,000 crore for the fiscal year ending March 2026. The airline is currently in the midst of a major transformation program. As part of this effort, it has been exploring various cost-control measures to mitigate its financial woes amid rising operational costs.