Air India Cuts Over 1,000 Jobs Amid Ethical Violations

Air India has recently terminated over 1,000 employees for ethical violations, as revealed by CEO Campbell Wilson during a town hall meeting. The airline is facing significant financial challenges, including a projected loss of ₹22,000 crores in the upcoming fiscal year. With rising operational costs due to high crude oil prices and a freeze on salary increases, the company is urging employees to adhere to ethical standards and reduce unnecessary expenses. The ongoing tensions in West Asia could further complicate the airline's situation, making the current year particularly difficult.

By Narendra Chaudhary May 10, 2026, 17:52 IST

Air India Job Cuts Due to Ethical Breaches

In the past three years, Air India, a subsidiary of the Tata Group, has terminated over 1,000 employees for violating ethical standards. During a town hall meeting with staff, CEO Campbell Wilson stated that hundreds of employees are dismissed annually for breaching company policies. He urged employees to maintain proper conduct. Reports indicate that among those dismissed were individuals involved in smuggling goods on Air India flights and allowing excess baggage without charges.

No Salary Increases This Year

Campbell Wilson also addressed the misuse of the employee leave travel scheme. In March, it was reported that Air India uncovered significant irregularities in the use of its leave travel policy, implicating over 4,000 employees. The company has implemented corrective measures, including imposing fines on those found guilty. Currently, Air India employs around 24,000 individuals and is taking steps to cut costs amid financial pressures, which includes freezing annual salary increases and urging employees to reduce unnecessary expenses.

Potential Challenges in West Asia

Wilson warned employees that if the ongoing tensions in West Asia do not improve, the current year could prove to be 'very challenging' for the company. Air India and Air India Express are projected to incur losses exceeding ₹22,000 crores in the fiscal year 2025-26. The current situation in West Asia is adversely affecting airline operations, with soaring crude oil prices significantly increasing operational costs.