New Delhi, May 8 -- Air India has assured its more than 24,000 employees that layoffs are off the table, even as the Tata-backed carrier defers annual salary increments by at least one quarter and tightens spending. The airline has been buffeted by the closure of Pakistan airspace, disruptions due to the West Asia war, and surging jet fuel costs.

"We don't anticipate layoffs," said chief human resources officer (CHRO) Ravindra Kumar G.P., addressing the employees during a town hall on Friday, two people present there told Mint.

The country's second-largest airline is battling a string of issues, including rising losses, geopolitical headwinds, macroeconomic factors such as the rupee's depreciation against the dollar, which are impacting...