
Air India will resume its annual salary increment cycle from October 1, CEO Campbell Wilson told employees at a townhall on Thursday. The revision had been deferred by one quarter due to…
Air India will resume its annual salary increment cycle from October 1, CEO Campbell Wilson told employees at a townhall on Thursday. The revision had been deferred by one quarter due to the impact of the Middle East crisis, which raised fuel costs and disrupted airspace. Wilson said the airline continues to face headwinds from elevated jet fuel prices, rupee depreciation and softer demand on the India-US corridor.

Despite these pressures, Air India plans to induct over 100 new aircraft across 2027-28 and retrofit 16 Boeing 787-8s in 2027. The airline's fleet-wide Net Promoter Score improved from -35 in FY23 to +37 in FY27 year-to-date, and it recorded a 91.6% on-time performance in June, ranking among the top four globally. The airline also achieved a Skytrax Four-Star rating in May.

The salary hike announcement is a positive signal, but it should not mask the turbulence Air India still faces. The CEO who drove this transformation is leaving next month, and the carrier is under regulatory scrutiny after the Phuket incident. The narrative of a smooth turnaround often ignores that profitability remains elusive, external volatility persists and the airline is burning cash on fleet renewal. The real test will be whether the widebody retrofit programme completes on schedule and if the carrier can sustain its NPS gains when cost pressures return.
Sources (3): ndtvprofit.com, greaterkashmir.com, timesnownews.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.