Air India has confirmed that layoffs are not on the agenda for its 24,000 employees, even as it defers salary increments for at least one quarter due to various financial challenges. Chief Human Resources Officer Ravindra Kumar G.P. reassured employees during a town hall meeting, emphasizing the airline's focus on cost management in light of rising losses and geopolitical disruptions, including the closure of Pakistan airspace and surging jet fuel prices. The airline's losses reportedly exceeded ₹10,000 crore (approximately $1.2 billion USD) in FY25, with the financial landscape remaining uncertain. Chief Executive Campbell Wilson highlighted the need for strict cost discipline, urging employees to cut discretionary spending and defer non-essential expenditures. The airline is also rationalizing its operations, including reducing some international flights that have become unprofitable due to increased operational costs. Despite the challenges, the absence of layoffs and the continuation of variable pay signal Air India's expectation of medium-term demand growth and a commitment to maintaining employee morale during this transitional period.