Air India Resumes Salary Hikes Oct 1 Amid Market Challenges

Air India CEO and Managing Director Campbell Wilson confirmed that annual salary increments will resume for employees starting October 1. This reassuring decision comes despite persistent operational and financial pressures facing the airline.

The move follows a temporary deferral of revisions, impacted by factors like elevated fuel prices and airspace disruptions. Challenges stemming from the Middle East crisis and the depreciation of the Indian rupee also contributed to the earlier pause.

Key Developments at Air India

• Salary increment cycle resumes: October 1
• New aircraft planned: Over 100 by 2027-2028
• DGCA On-Time Performance (June): 91.6%

Wilson affirmed that Air India’s ambitious fleet transformation initiatives are proceeding as planned, with a strong focus on achieving profitability. The airline is committed to its growth trajectory despite the current economic environment.

Fleet Transformation Continues

As part of its ongoing fleet renewal program, the Air India Group aims to induct more than 100 new aircraft during 2027 and 2028. This significant expansion underscores the airline’s long-term vision for modernizing its services.

• In 2026, three Boeing 787-9 aircraft were incorporated.
• Two Airbus A350-1000 aircraft are also anticipated to join the fleet later this year.

The retrofit program for Air India’s legacy narrow-body fleet has been successfully completed. Efforts are also well underway to upgrade its wide-body aircraft to enhance passenger comfort and experience.

• Three retrofitted Boeing 787-8 planes commenced service this year.
• An additional four are expected to be operational by the end of 2026.
• The airline plans to retrofit 16 more Boeing 787-8 aircraft in 2027, nearing overall completion by the end of that year.

Boosting Passenger Experience and Operations

Air India’s transformation efforts have notably improved passenger sentiment. The Net Promoter Score (NPS) for its retrofitted 787-8 fleet saw a significant increase.

• NPS for retrofitted 787-8 fleet: from -31 to +43.
• Across the entire fleet, NPS improved from -35 in FY23 to +37 in FY27 to date.
• The monthly peak NPS reached +42 in June 2026.

These advancements in fleet, cabins, digital systems, and passenger experience earned Air India a Four-Star Airline rating by Skytrax in May. Operational performance also saw considerable improvements.

• Air India achieved its highest-ever DGCA on-time performance (OTP) of 91.6% in June.
• The year-to-date OTP stands at 85%, an increase from 76% in FY26.
• According to Cirium, Air India was among the top four airlines globally for punctuality in June, recording an 86.85% on-time arrival rate across 15,135 tracked flights.
• The carrier successfully reduced long delays by nearly 60% and maintained over 90% of its planned network despite airspace disruptions.
• Wide-body technical dispatch reliability improved to 97.4%.

The resumption of salary increments signals Air India’s commitment to its employees and its ongoing journey of operational stability and growth, even as it navigates a complex global environment.