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Why did Air India fire over 1,000 employees in just 3 years? Here's what the CEO says

Air India CEO Campbell Wilson says the airline has terminated over 1,000 employees over ethical breaches in the last three years, including misuse of employee travel benefits.

By Trisha Katyayan

May 11, 2026 15:42 IST

Air India has terminated more than 1,000 employees over the last three years for ethical violations, including misuse of the airline’s employee leisure travel system, according to CEO and Managing Director Campbell Wilson, as reported by Hindustan Times.

Wilson made the remarks during a town hall meeting with employees on Friday as the Tata Group-owned airline continues to implement cost-control measures amid mounting financial pressure.

Ethical breaches under scrutiny

Addressing staff, Wilson said the airline had taken strict action against employees found involved in unethical practices.

Also Read | Air India defers employee salary hikes as fuel costs, route disruptions rise

“Over the past three years, we have terminated more than 1,000 people for ethical breach,” he said, according to sources.

The violations reportedly included smuggling items off aircraft, allowing excess baggage without proper charges and misuse of employee travel benefits.

Wilson also referred to cases involving the Employee Leisure Travel (ELT) system, where staff members were found violating company policy.

Earlier this year, sources told PTI that Air India had identified large-scale discrepancies in the use of its leisure travel scheme involving more than 4,000 employees. The airline had then initiated corrective measures and imposed penalties on those found responsible.

The CEO stressed the importance of maintaining ethical conduct even when no one is watching and reminded employees that non-compliance continued to result in hundreds of terminations every year.

Airline faces financial pressure

The comments came as Air India pushes ahead with cost-saving measures across the organisation. The airline has reportedly held back annual salary increments and advised employees to reduce discretionary and non-essential spending.

Wilson also warned employees about the difficult business environment facing the aviation sector.

On Friday, he told staff that it is going to be a "very, very difficult year" if the situation in the Middle East does not improve.

Also Read | Air India may cut flights, salaries as Iran war adds to financial crisis

The Air India Group, which includes Air India and Air India Express, is projected to have incurred losses exceeding ₹22,000 crore in the financial year ending March 2026, according to the report.

Air India currently employs around 24,000 people as it continues efforts to restructure operations and improve financial performance under the Tata Group.

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