Air India has decided to delay pay hikes for its employees and sharpen its focus on cost reduction, as the state-owned carrier continues to grapple with financial losses. The move comes amid ongoing efforts to improve the airline's financial health and operational efficiency.
According to sources familiar with the matter, the airline's management communicated the decision to employees, citing the need to prioritize cost control in the face of sustained losses. The pay hikes, which were previously scheduled, have been postponed indefinitely.
Air India has been working on a turnaround plan, including fleet modernization and route optimization, but the airline's financial performance has remained under pressure due to high fuel costs and intense competition in the aviation sector. The airline has not yet commented on the specific timeline for the pay hikes.
