Air India employees to get annual pay increments from October 1

Air India will resume its annual salary increment cycle from October 1, marking the return of pay revisions that had been deferred due to the impact of the Middle East crisis on the airline's operations and finances.

According to NDTV, Campbell Wilson, Chief Executive Officer and Managing Director of Air India, informed employees of the decision during a town hall meeting on Thursday. The announcement comes as the airline continues to navigate elevated fuel prices, airspace disruptions and currency pressures while pushing ahead with its multi-year transformation programme.

Wilson told employees that profitability remains a key focus for the airline, even as it continues to invest in fleet modernisation and operational improvements.

Salary revision cycle returns amid external pressures

The annual increment cycle had been postponed as the airline dealt with challenges arising from geopolitical tensions in the Middle East, which affected airspace availability and increased operational complexity for carriers worldwide.

Air India also continues to face:

• Higher fuel costs
• Airspace disruptions affecting flight operations
• Depreciation of the Indian rupee
• Ongoing transformation and fleet renewal investments

Despite these pressures, Wilson said the airline's transformation plans remain on track.

The decision to restore annual salary increments signals growing confidence in the airline's ability to balance workforce investments with broader business priorities.

Fleet expansion remains a major focus

Alongside the salary announcement, Wilson highlighted progress in Air India's fleet transformation programme.

The airline group plans to induct more than 100 aircraft during 2027 and 2028 as part of its long-term fleet renewal strategy.

Key fleet milestones include:

• Three Boeing 787-9 aircraft inducted during 2026
• Two Airbus A350-1000 aircraft expected to join the fleet later this year
• Completion of the retrofit programme for the airline's legacy narrow-body fleet
• Three retrofitted Boeing 787-8 aircraft already deployed in service during 2026
• Four additional retrofitted Boeing 787-8 aircraft expected by the end of 2026
• Plans to retrofit 16 Boeing 787-8 aircraft during 2027

According to Wilson, these upgrades will bring the airline close to completing its broader retrofit programme by the end of 2027.

The fleet modernisation effort forms a central part of Air India's strategy to improve customer experience, operational reliability and long-term competitiveness.

Customer sentiment shows significant improvement

Air India's transformation programme has also translated into stronger passenger feedback metrics.

According to figures shared during the town hall:

• Net Promoter Score (NPS) for retrofitted Boeing 787-8 aircraft improved from -31 to +43
• Fleet-wide NPS increased from -35 in FY23 to +37 in FY27 so far
• The airline recorded an all-time monthly NPS high of +42 in June 2026

The carrier also received a Four-Star Airline rating from Skytrax in May following improvements across fleet quality, cabin experience, digital systems and customer service.

The gains indicate growing customer acceptance of the airline's ongoing transformation efforts as upgraded aircraft and service enhancements continue to enter the network.

Operational performance reaches new milestones

Wilson also pointed to improvements in punctuality and operational reliability.

Air India recorded its highest-ever DGCA on-time performance (OTP) of 91.6% in June, while year-to-date OTP reached 85%, compared with 76% in FY26.

Additional operational achievements include:

• Ranking among the world's top four airlines for punctuality in June, according to Cirium
• An on-time arrival rate of 86.85% across 15,135 tracked flights
• A completion factor of 99.7%
• Nearly 60% reduction in long delays
• Maintenance of more than 90% of its planned network despite Middle East-related airspace disruptions
• Improvement in wide-body technical dispatch reliability to 97.4%

These metrics reflect the airline's efforts to strengthen operational consistency while managing external disruptions and growing passenger volumes.

Balancing workforce investment and transformation

The resumption of annual salary increments comes as Air India enters the next phase of its transformation journey. The airline is simultaneously investing in fleet renewal, service upgrades, operational performance and employee engagement.

While external challenges remain, the company continues to pursue profitability alongside long-term growth initiatives. The October salary revision cycle will be closely watched by employees as Air India works to sustain momentum across both business and workforce priorities.