Air India resumes salary hikes from October as fleet expansion accelerates

Air India will resume its annual salary increment cycle from October 1 after postponing revisions due to operational and financial pressures linked to the Middle East crisis, according to comments made by Chief Executive Officer and Managing Director Campbell Wilson during a company townhall reported by NDTV.

The decision comes as the Tata Group-owned carrier continues a multi-year transformation programme centred on fleet modernisation, service upgrades and profitability. While challenges such as elevated fuel costs, airspace disruptions and rupee depreciation persist, the airline said its fleet renewal plans remain on track.

Fleet renewal enters next phase

Air India is preparing for a significant expansion of its fleet over the next two years as it seeks to strengthen its domestic and international network.

According to details shared during the townhall, the airline plans to induct more than 100 new aircraft across 2027 and 2028.

Key fleet milestones include:

• Three Boeing 787-9 aircraft added 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 in service
• Four additional retrofitted Boeing 787-8s expected to enter service before the end of 2026
• Plans to retrofit 16 Boeing 787-8 aircraft in 2027

The retrofit programme is designed to upgrade cabins and passenger experience across Air India's long-haul fleet as part of its broader transformation strategy.

Passenger sentiment shows marked improvement

The airline's investment in fleet upgrades and service improvements appears to be translating into stronger customer feedback.

According to figures shared by Wilson, the Net Promoter Score (NPS) for Air India's retrofitted Boeing 787-8 fleet improved from minus 31 to plus 43.

Across the wider airline, customer sentiment has also strengthened considerably.

Performance indicators highlighted during the townhall include:

• Fleet-wide NPS improved from minus 35 in FY23 to plus 37 in FY27 so far
• Monthly NPS reached a record plus 42 in June 2026
• Air India received a Four-Star Airline rating from Skytrax in May 2026

The improvements follow investments in aircraft cabins, digital systems and customer-facing services.

Operational metrics continue to strengthen

Alongside customer experience gains, Air India reported improvements in punctuality and reliability.

The airline achieved its highest-ever Directorate General of Civil Aviation (DGCA) on-time performance of 91.6% in June 2026.

Additional operational achievements include:

• Year-to-date on-time performance of 85%, compared with 76% in FY26
• Ranking among the world's top four airlines for punctuality in June, according to aviation analytics firm Cirium
• 86.85% on-time arrival rate across 15,135 tracked flights
• 99.7% completion factor
• Nearly 60% reduction in long delays
• Maintenance of more than 90% of planned network operations despite airspace disruptions linked to the Middle East conflict
• Improvement in wide-body technical dispatch reliability to 97.4%

These metrics reflect the carrier's efforts to improve consistency and operational resilience while executing one of the aviation sector's largest fleet transformation programmes.

Balancing growth with profitability

While announcing the return of salary increments, Wilson acknowledged continuing headwinds facing the airline industry, including volatile fuel prices, geopolitical disruptions and currency pressures.

The company has maintained profitability as a key priority while simultaneously investing in fleet modernisation and service enhancements.

The resumption of annual salary revisions signals growing confidence in the airline's operational trajectory as it advances a transformation programme that spans aircraft upgrades, customer experience and network growth.

With more than 100 aircraft scheduled to join the fleet over the next two years and retrofit activity continuing across its wide-body operations, Air India's next phase of growth will be closely watched by employees, passengers and industry stakeholders alike.