Air India Announces Salary Hikes From October 1, Leadership Change Ahead
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Air India will implement its annual salary increments from October 1, 2026, after deferring the pay revision by three months amid the impact of the Middle East crisis on the airline’s operations and costs.
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Campbell Wilson, Chief Executive Officer and Managing Director of Air India, confirmed the decision during a townhall with employees on August 13. The airline had earlier postponed the annual salary revision, with the increase now scheduled to take effect from October 1.
The decision comes at a time when airlines across the region have been dealing with operational disruptions caused by the conflict in West Asia. Changes in flight routes, longer flying times, higher fuel consumption and increased operating costs have put additional pressure on airlines.
For Air India, the disruption has affected several international services. The airline has had to adjust routes and operations because of airspace restrictions in the region. The situation has also added to costs at a time when the airline is undertaking a large-scale fleet expansion and modernisation programme.
Revised Pilot Pay Structure
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The revised pay structure for the airline pilots will also take effect from October 1. The move is significant as the airline continues to integrate its operations following the merger of Air India and Vistara.
Air India has been working on standardising employment terms and compensation structures across its workforce as part of the wider integration process. Pay and employment conditions have been an important area for employees during the integration of the two airlines.
The October revision will restore the regular annual salary review cycle after the three-month deferral.
Air India Continues Fleet Expansion
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Despite the pressure from higher operating costs, the airline continues to expand and modernise its fleet.
The Air India Group plans to add more than 100 aircraft over the next two years. The group, which includes Air India and Air India Express, currently has a fleet of nearly 300 aircraft.
The airline has already added three Boeing 787-9 aircraft during 2026, while two Airbus A350-1000 aircraft are expected to join the fleet later this year.
The airline is also continuing its aircraft retrofit programme. The retrofit of its legacy narrow-body aircraft has been completed, while three Boeing 787-8 aircraft have already undergone refurbishment this year. Four more Boeing 787-8 aircraft are expected to return to service by the end of 2026, with another 16 aircraft planned for retrofit in 2027.
The airline is also focusing on improving operational performance. Air India recorded an on-time performance of 91.6% in June 2026, according to the company.
Leadership Change Ahead
The salary announcement comes ahead of a leadership transition at Air India. Wilson had announced his resignation earlier this year, and he will depart on September 30, 2026.
Tewolde Gebremariam, former CEO of Ethiopian Airlines Group, has been appointed as Air India’s next CEO and Managing Director. His appointment comes as the airline enters the next phase of its transformation under the Tata Group.
The salary revision from October will therefore be implemented during this leadership transition and at a time when the airline is balancing employee compensation, operational costs, fleet investments and its long-term expansion plans.
For employees, the October 1 revision provides clarity on the timing of the delayed annual salary increase, while the airline continues to manage the financial and operational impact of the ongoing Middle East crisis.