Air India Board To Review Cost Cuts, CEO Plan Amid Mounting Losses

The board of Air India is set to meet on May 7 in Mumbai to deliberate on a range of crucial issues, including cost-saving measures , CEO succession , and the airline’s financial performance, as it grapples with mounting losses and operational challenges.

According to sources, the Tata Group-owned carrier is expected to have incurred a loss of over ₹22,000 crore in the financial year ended March 2026. The airline has been facing increasing headwinds, which have intensified due to the ongoing West Asia conflict, impacting operations and profitability.

One of the key items on the agenda will be the search for a new Chief Executive Officer, as current CEO Campbell Wilson is slated to step down later this year. The board, chaired by N. Chandrasekaran, is likely to discuss potential candidates, including internal executives from Air India and Singapore Airlines, which holds a 25.1 per cent stake in the airline. Sources indicated that candidates from Europe may also be considered, and there is even a possibility of a joint CEO or Managing Director structure .

The meeting will also focus on various cost-cutting strategies being explored by the airline in response to rising operational expenses, particularly the surge in jet fuel prices. Among the measures under consideration is the unbundling of services , such as separating meals from ticket pricing and making lounge access optional for business class passengers. However, sources clarified that these proposals are still under discussion and no final decision has been taken.

Air India’s operations have been significantly affected by airspace restrictions resulting from the West Asia conflict, forcing the airline to take longer routes on several international sectors. This has led to higher fuel consumption and increased costs, rendering many international flights unprofitable . In response, the airline has already reduced some international services in April and May, with further schedule cuts likely in June and July .

In a recent communication to employees, Wilson highlighted the sharp rise in jet fuel prices and operational disruptions due to airspace closures, stating that these factors have severely impacted the airline’s financial performance. While the government has capped the increase in domestic fuel prices to 25 per cent, the profitability of domestic operations has also been affected, though to a lesser extent.

To offset rising costs, Air India has increased airfares and imposed fuel surcharges. However, the airline acknowledged that higher ticket prices could dampen passenger demand, limiting the extent to which fares can be raised.

The challenges are not limited to Air India alone. Indian carriers, including IndiGo and SpiceJet, recently informed the government that the aviation sector is under extreme stress and sought financial support and a revision in jet fuel pricing.

Globally, the aviation industry is also facing turbulence due to the West Asia situation. The International Air Transport Association has warned of possible jet fuel shortages in Asia and Europe in the coming months, with elevated fuel costs increasingly being reflected in ticket prices.

Apart from Chandrasekaran and Wilson, the Air India board includes Goh Choon Phong, along with Sanjiv Mehta, Alice Vaidyan, P. R. Ramesh, and P. B. Balaji.

Tata Sons and Air India did not comment on the developments.