Air India has set up a dedicated team to identify cost savings across operations and tightened spending approvals as the airline grapples with airspace disruptions, the Middle East conflict and high jet fuel costs, CEO Tewolde Gebremariam told employees in an internal memo. The carrier faces mounting pressure to restore profitability and rebuild confidence in its safety standards after recording a loss of more than $2 billion in the fiscal year ended March and coming under regulatory scrutiny following a fatal crash in June 2025 that killed 260 people.