Air India delays salary hikes and accelerates cost cuts as FY26 outlook turns volatile

Salary raises are pushed back while route shifts start

Air India is pressing pause on planned salary hikes as it responds to global headwinds and a more uncertain FY26 outlook. The airline is prioritising cost reduction after its expansion, while also optimising routes and improving on-time performance. Management says the savings are meant to protect service quality and ongoing improvements, even as staffing-related pay moves are delayed.