Air India will restore salaries that were cut in the wake of the coronavirus pandemic from September 1, according to a communication.

The loss-making airline, which was taken over by Tatas in January this year, has also decided to revise crew layover allowances and meal arrangements from September 1.

In the communication to the employees, Air India CEO and Managing Director Campbell Wilson said the airline "will be restoring the salary reduction for all employees with effect from September 1, 2022".

While the airline has much to do to return to profitability, "sunsetting most of the Covid measures is an important and welcome milestone", he said.

The coronavirus pandemic had significantly impacted the airline industry, and the operators had resorted to cost-cutting measures, including salary reductions, to manage their financials.