Air India fires 1,000+ staff in 3 years amid ₹22,000 crore loss fears
Synopsis
Over 1,000 Air India employees fired in three years for misconduct as the Tata-owned carrier battles projected losses exceeding ₹22,000 crore. CEO Campbell Wilson has warned staff of a potentially 'very, very difficult' year ahead, citing Middle East uncertainties and a steep jump in Air India Express losses.
Key Takeaways
Air India has terminated more than 1,000 employees over three years for ethical misconduct and policy violations.
CEO Campbell Wilson disclosed the terminations at a town hall, citing ELT misuse, smuggling, and baggage charge violations.
The Air India Group is projected to post losses exceeding ₹22,000 crore for FY 2025-26 .
Air India Express recorded a loss of ₹5,832.37 crore in FY 2024-25 , reversing a profit of ₹116.32 crore in FY 2022-23 .
Cost-cutting steps include salary increment freezes and cuts to discretionary and non-critical spending.
Wilson warned the current year could be "very, very difficult" if Middle East conditions do not improve.
Air India has terminated more than 1,000 employees over the past three years for ethical misconduct and policy violations, as the Tata Group-owned carrier intensifies its internal compliance drive amid mounting financial pressure. The disclosure was made by Air India CEO and Managing Director Campbell Wilson during a town hall meeting with employees.
What Triggered the Terminations
According to reports, Wilson told staff that action had been taken 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 crackdown reflects a broader push to tighten governance standards across the airline's workforce as part of its ongoing turnaround.
Scale of Financial Stress
The compliance drive comes against the backdrop of severe financial strain. The Air India Group, comprising Air India and Air India Express, is projected to have posted losses of more than ₹22,000 crore in the financial year ended March 2026. This follows a steep deterioration in performance at Air India Express, which recorded a loss of ₹5,832.37 crore in FY 2024-25 — a dramatic reversal from a modest profit of ₹116.32 crore in FY 2022-23 and a loss of ₹163.12 crore in FY 2023-24. These figures were disclosed by Minister of State for Civil Aviation Murlidhar Mohol in a written reply to Lok Sabha on 11 December 2025.
Cost-Cutting Measures Underway
As part of its broader restructuring under the Tata Group, Air India has already initiated several cost-saving steps. These include withholding annual salary increments, reducing discretionary spending, and cutting non-critical expenditure across departments. The measures signal a sharp shift in management posture — from post-acquisition expansion to financial consolidation.
Warning on Global Headwinds
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
Point of View
But it is a symptom of a deeper structural problem: the Tata Group inherited a carrier with legacy inefficiencies and is now racing to fix culture and costs simultaneously. Terminating over 1,000 employees signals intent, yet the projected ₹22,000 crore loss for FY26 suggests that misconduct alone was never the core drag — overcapacity, fleet integration delays, and route economics are the harder problems. The steep jump in Air India Express losses is particularly telling: the low-cost arm, which had briefly turned profitable, is now bleeding at a scale that dwarfs the parent's governance savings. Without a credible path to yield improvement and fleet rationalisation, the compliance drive risks being the most visible — but least decisive — lever pulled.
NationPress
12 Aug 2026
Frequently Asked Questions
Why has Air India terminated over 1,000 employees?
Air India terminated more than 1,000 employees over the past three years for ethical misconduct and policy violations, including misuse of the Employee Leisure Travel system, smuggling items off aircraft, and waiving excess baggage charges without authorisation. CEO Campbell Wilson disclosed this at a town hall meeting with staff.
What are Air India's projected losses for FY 2025-26?
The Air India Group, comprising Air India and Air India Express, is projected to have posted losses exceeding ₹22,000 crore for the financial year ended March 2026. This represents a significant escalation in financial stress for the Tata-owned airline.
How much did Air India Express lose in FY 2024-25?
Air India Express recorded a loss of ₹5,832.37 crore in FY 2024-25, a steep reversal from a profit of ₹116.32 crore in FY 2022-23. The figures were confirmed by Minister of State for Civil Aviation Murlidhar Mohol in a written reply to Lok Sabha on 11 December 2025.
What cost-cutting measures has Air India introduced?
Air India has withheld annual salary increments, reduced discretionary spending, and cut non-critical expenditure across departments as part of its restructuring under the Tata Group. These measures are aimed at stabilising the airline's finances during a difficult turnaround period.
What external risks did Air India's CEO flag for the current financial year?
CEO Campbell Wilson warned employees about uncertainties linked to the Middle East situation, which continues to impact global aviation. He reportedly cautioned that the current financial year could become 'very, very difficult' if conditions in the region do not improve.
