New Delhi, May 11, (CXO Media): Air India has fired more than 1,000 employees in the last three years as the airline battles rising losses and tightens internal checks amid growing financial pressure.
The Tata Group-owned airline took action against staff over alleged ethical misconduct and policy violations, including misuse of employee travel benefits, unauthorised baggage clearances and smuggling-related incidents onboard aircraft, Air India CEO and Managing Director Campbell Wilson reportedly told employees during a recent town hall.
The employee terminations come at a difficult phase for Air India. The Air India Group, including Air India Express, is expected to report losses of more than Rs 22,000 crore for the financial year ending March 2026, raising concerns around costs and long-term profitability.
As part of its turnaround efforts, the airline has reportedly paused annual salary hikes, cut non-essential spending and tightened internal controls to reduce expenses.
Government data presented in Parliament earlier showed that Air India Express recorded a sharp rise in losses in FY25 after reporting a profit in FY23. The worsening financial position adds to the challenges facing the airline group as it works to stabilise operations.
Wilson also reportedly warned employees about uncertainty in the aviation sector, especially due to the Middle East situation, saying the current financial year could become “very difficult” if disruptions continue.
The development signals a shift in Air India’s focus from aggressive expansion to tighter compliance, cost control and operational discipline as losses mount.
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