Air India's outgoing CEO, Campbell Wilson, has announced a series of cost-cutting measures due to a challenging fiscal outlook for FY26. The airline, which has experienced a 40% compound annual growth rate since the Tata Group took control in 2022, is now facing a volatile demand environment influenced by external factors such as the prolonged closure of Pakistan's airspace, the Iran war, and skyrocketing jet fuel prices. As part of its austerity measures, Air India will delay salary hikes by at least a quarter and freeze discretionary spending. CFO Sanjay Sharma noted that while FY25 benefited from rapid fleet deployment, FY26 is expected to be more unpredictable. Despite these challenges, Air India reported a rise in domestic on-time performance to 76%, up from 73% the previous year, and its net promoter score improved significantly to 30 in March 2026 from a negative 19 in 2023. The airline is also working to optimize its network and expand its Southeast Asia routes from two to seven destinations.