New Delhi, May 10 Facing rising financial pressure and operational challenges, Air India has intensified its internal compliance and cost-control measures, with the airline terminating more than 1,000 employees over the last three years for ethical misconduct and policy violations.
The disclosure was made by Air India CEO and MD Campbell Wilson during a town hall meeting with employees.
Wilson reportedly told staff that the airline had taken action against employees involved in multiple violations, including misuse of the Employee Leisure Travel (ELT) system, smuggling items off aircraft and allowing excess baggage without proper charges.
The airline’s stricter enforcement comes at a time when it is battling significant financial stress.
The Air India Group, comprising Air India and Air India Express, is projected to have posted losses of more than Rs 22,000 crore in the financial year ended March 2026.
As part of its broader restructuring and turnaround efforts under the Tata Group, the airline has already initiated several cost-saving measures.
These include withholding annual salary increments for employees, reducing discretionary spending and cutting non-critical expenditure across departments.
The Tata-Group airline implementing these measures as government data also showed that Air India Express reported a significant jump in losses during the FY25.
In a written reply to Lok Sabha on December 11, 2025, Minister of State for Civil Aviation Murlidhar Mohol said that the airline, which had posted a Rs 1,63.12 crore loss in FY 2023-24, recorded a steep loss of Rs 58,32.37 crore in FY 2024-25.
This marks a major setback compared to its small profit of Rs 1,16.32 crore in FY 2022-23.
According to the data, several Indian carriers continued to face challenges, though some airlines managed to improve their performance.
Wilson also cautioned employees about the difficult business environment, particularly uncertainties linked to the Middle East situation, which continues to impact the aviation sector globally.
He reportedly warned that the current financial year could become “very, very difficult” if conditions in the region fail to improve.
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