Manta Air Introduces Salary Reductions Amid Tourism Downturn Driven by Iran–US–Israel Conflict

Manta Air has introduced temporary salary reductions across the company as the ongoing Iran–US–Israel conflict continues to weaken tourist arrivals to the Maldives, placing renewed financial pressure on domestic aviation operators. The decision was communicated through an internal memo issued to staff this week, outlining the latest phase of the airline’s cost‑management strategy.

The memo follows the “Business Update and Cost Management Measures - Notice of Possibility of Redundancy” circulated on 13 April 2026, which informed employees of the potential for redundancies under Article 4(a)(3) of Regulation 2021/R‑63. In its latest communication, the company states that the prolonged regional conflict has had a direct and sustained impact on its business performance, prompting a continuous review of operational requirements, workforce needs, and overall cost structure.

According to the memo, Manta Air’s priority remains to avoid or minimise redundancies wherever possible. The airline emphasised that the salary adjustment is a mitigation measure designed to distribute the financial burden equitably across the organisation while safeguarding long‑term business sustainability.

Effective 1 May 2026, the company will implement a temporary revision to fixed remuneration, including salaries and allowances, for all team members. The adjustment has been set for an initial period of three months, ending on 31 July 2026, after which it will be reviewed and may be withdrawn, amended, suspended, or extended with notice. The memo stresses that the decision was reached after careful consideration and that the company recognises the personal impact such measures may have on employees.

Department Heads and the HR Department will now engage directly with staff to explain how the changes apply to their respective roles and to address any questions. The memo concludes by thanking employees for their professionalism and commitment during what it describes as a challenging period for the aviation and tourism sectors.

Manta Air’s decision comes as Trans Maldivian Airways (TMA) implemented similar temporary salary deductions in response to the same downturn in tourist arrivals. Both operators have cited weakened forward bookings, cancellations, and reduced passenger volumes as key pressures on their operations.

The current situation echoes the financial strain faced by Maldivian aviation operators during the COVID‑19 pandemic, when prolonged border closures and global travel restrictions forced companies to adopt salary cuts, unpaid leave schemes, and other cost‑saving measures to preserve jobs and maintain essential services.