- Air India will resume annual salary increments from October 1 after a temporary deferral
- The airline plans to add over 100 new aircraft during 2027 and 2028 as part of fleet renewal
- Air India's fleet retrofit program nears completion with several Boeing 787-8 aircraft upgraded
Air India will resume its annual salary increment cycle from Oct. 1, CEO and Managing Director Campbell Wilson told employees during a townhall on Thursday, according to NDTV.
The airline had deferred the salary revision cycle amid the impact of the Middle East crisis, which has put pressure on its operations and finances.
Wilson said Air India continues to face challenges from elevated fuel prices, airspace disruptions and the depreciation of the rupee. Despite these pressures, the CEO said the airline's fleet transformation remains on schedule, while profitability continues to be a key priority.
Over 100 aircraft planned for 2027-28
Air India Group plans to induct more than 100 new aircraft across 2027 and 2028, as it continues its fleet renewal programme.
The airline has already added three Boeing 787-9 aircraft in 2026. Two Airbus A350-1000 aircraft are also expected to join the fleet later this year.
Air India's legacy narrow-body fleet has completed its retrofit programme. On the wide-body side, three retrofitted Boeing 787-8 aircraft have entered service this year, with four more expected to be operational by the end of 2026.
The airline plans to retrofit 16 Boeing 787-8 aircraft in 2027, taking the fleet's overall retrofit programme close to completion by the end of that year.
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Air India's transformation has also produced a significant improvement in passenger sentiment. The NPS for its retrofitted 787-8 fleet has risen from -31 to +43.
Across the airline, fleet-wide NPS has improved from -35 in FY23 to +37 in FY27 so far. It reached an all-time monthly high of +42 in June 2026.
Air India also received a Four-Star Airline rating from Skytrax in May, following improvements in fleet, cabins, digital systems and passenger experience.
Punctuality and operational reliability improve
Wilson also highlighted gains in Air India's operational performance.
The airline recorded its highest-ever DGCA on-time performance of 91.6% in June, while its year-to-date OTP has reached 85%, compared with 76% in FY26.
Air India also ranked among the top four airlines globally for punctuality in June, according to Cirium. The airline recorded an 86.85% on-time arrival rate across 15,135 tracked flights and a 99.7% completion factor.
The carrier has reduced long delays by nearly 60% and maintained more than 90% of its planned network despite airspace disruptions linked to the Middle East crisis.
Wide-body technical dispatch reliability has meanwhile improved to 97.4%, another indicator of the airline's focus on operational stability.
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