Air India delays staff salary hikes over rising fuel prices, airspace curbs

Air India has deferred employee annual increments by at least one quarter as part of cost-cutting measures due to an uncertain economic environment. The airline does not anticipate layoffs and will continue to pay performance-related variable pay for last year. External challenges affecting the aviation sector include airspace closures, geopolitical conflicts, a sharp depreciation of the rupee, and a significant increase in jet fuel prices. Air India is focusing on reducing costs and eliminating wastage to recover from financial losses.