Air India board discusses cost-cutting measures amid mounting losses

NEW DELHI: The Tata Group-backed Air India board has discussed a range of cost-cutting measures, including possible furloughs and deferment of performance-linked bonuses, as the airline grapples with mounting losses and rising operating pressures amid the ongoing West Asia conflict, as per multiple reports.

The meeting that was held at the airline’s headquarters in Gurugram, lasted for more than three hours and focused on the carrier’s financial position, cost rationalisation initiatives and broader operational challenges.

The airline is evaluating multiple austerity measures to contain expenses as higher jet fuel prices and airspace restrictions linked to geopolitical tensions in West Asia continue to impact operations.

Among the options discussed were temporary unpaid leave for employees and delaying bonus payouts, which form part of employees’ cost-to-company structure.

The airline has been experiencing a sharp increase in operating expenses in recent months due to longer flying routes and elevated fuel costs arising from the regional conflict.

The board also reviewed the airline’s financial performance for 2025-26 and deliberated on leadership transition plans, including the selection of a new Chief Executive Officer.