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Air India Fires 1,000+ Staff in 3 Years Amid Rs 22,000 Crore Losses

Air India has terminated over 1,000 employees in three years for misconduct including misuse of travel benefits and smuggling. The airline faces projected losses exceeding Rs 22,000 crore for FY26 under the Tata Group. CEO Campbell Wilson warned employees of a "very difficult" financial year amid global aviation uncertainties. The airline has implemented cost-saving measures including withholding salary increments and reducing discretionary spending.

Key Points: Air India Terminates 1,000 Staff Amid Massive Losses

  • Over 1,000 employees terminated in 3 years for misconduct
  • Air India Group projected losses over Rs 22,000 crore in FY26
  • Salary increments withheld, discretionary spending cut
  • Air India Express losses jumped to Rs 5,832 crore in FY25
2 min read

Air India tightens compliance drive amid mounting losses, over 1,000 staff terminated in 3 yrs

Air India has fired over 1,000 employees in three years for misconduct. The airline faces Rs 22,000 crore losses as Tata Group pushes cost-cutting measures.

"The current financial year could become very, very difficult if conditions in the region fail to improve. - Campbell Wilson, Air India CEO"

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.

- IANS

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Reader Comments

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Priya S
Rs 22,000 crore loss? 😳 That's mind-boggling. But I'm glad the Tata management is taking tough decisions. The ELT system misuse was a known problem for decades - staff would give their travel benefits to friends and relatives illegally. If employees can't follow basic rules, termination is fair. At least now Air India is thinking like a real business, not a government department.
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Ravi K
Honestly, I feel for the employees who lost their jobs. But at the same time, the airline was running like a chalta-hai operation for so long. Misusing ELT and smuggling items off aircraft? That's not minor stuff. However, I hope the management is also addressing the root causes - low morale, poor pay for junior staff, and unrealistic targets. Otherwise, replacements will also do the same things.
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Aditya G
Good move by Campbell Wilson. It takes guts to clean house like this, especially with unions breathing down your neck. But the real question is whether these cost cutting measures will hurt service quality further. Withholding salary increments for all employees might demotivate the honest workers. They need a balanced approach - penalize the wrongdoers, but reward the hard workers. 🤔
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Divya L
I work in aviation and this news doesn't surprise me. ELT abuse is rampant in many airlines, not just Air India. The Tata Group is doing what needs to be done - but let's also talk about the government's role. High ATF taxes, ridiculous airport charges, and policy uncertainty are killing Indian carriers. Even the best management can't fix an uneven playing field. ✈️
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James A

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