Manta Air has become the latest Maldivian carrier to introduce temporary salary cuts as the country’s aviation sector buckles under the weight of a tourism slowdown driven by the prolonged Iran–US–Israel conflict. The reductions, communicated to staff through an internal memo this week, mark the second major workforce-related cost measure announced by the airline in less than a month.
A Phased Cost-Management Strategy
The salary revision builds on an earlier memo dated 13 April 2026, titled “Business Update and Cost Management Measures – Notice of Possibility of Redundancy,” which alerted staff to potential job cuts under Article 4(a)(3) of Regulation 2021/R-63. That regulation, issued under the Employment Act, sets out the procedural requirements employers must follow when contemplating redundancies, including notice periods and consultation obligations.
In the latest memo, Manta Air explained that the regional conflict has had a “direct and sustained impact” on business performance, forcing a continuous review of operational requirements, workforce needs, and overall cost structure. The company stressed that avoiding or minimising redundancies remains its priority, framing the salary cut as a mitigation measure designed to spread the financial burden across the organisation rather than concentrate it on a smaller group of employees through layoffs.
Key points:
- Manta Air announces temporary salary reductions effective 1 May 2026, lasting an initial three months
- Decision follows an earlier April notice warning of possible redundancies
- Trans Maldivian Airways has implemented similar measures, signalling sector-wide pressure
- Tourism downturn linked to the ongoing Iran–US–Israel conflict has weakened forward bookings and passenger volumes
What the Cuts Look Like
Effective 1 May 2026, the airline will apply a temporary revision to fixed remuneration — covering both salaries and allowances — for all team members. The adjustment will run for an initial three-month period ending 31 July 2026, after which the company will review the measure and may withdraw, amend, suspend, or extend it with notice.
Department heads and the Human Resources team will meet with staff individually to explain how the changes apply to specific roles. The memo closed by thanking employees for their professionalism during what it described as a challenging period for the aviation and tourism sectors.
A Sector-Wide Pattern
Manta Air’s announcement follows a similar move by Trans Maldivian Airways (TMA), the world’s largest seaplane operator, which recently implemented its own temporary salary deductions in response to the same market conditions. Both carriers have cited weakened forward bookings, cancellations, and reduced passenger volumes as the principal pressures on their operations.
Domestic aviation occupies a critical position in the Maldives’ tourism architecture: with resorts spread across more than 180 inhabited islands and atolls, seaplane and domestic flight transfers are often the only practical means of moving guests from Velana International Airport to their final destinations. When tourist arrivals fall, the impact on aviation operators is immediate and disproportionate compared to other tourism-adjacent industries.
Echoes of the Pandemic
The current situation carries clear parallels to the financial strain Maldivian aviation operators faced during the COVID-19 pandemic, when prolonged border closures and global travel restrictions pushed carriers to adopt salary cuts, unpaid leave schemes, and other cost-saving measures to preserve jobs. That period also saw the government roll out targeted support packages for the tourism sector, including loan deferrals and wage subsidies — measures that may again come into focus if the current downturn deepens.
The Legal Backdrop
Temporary salary reductions raise specific obligations under Maldivian employment law. The Employment Act (Law No. 2/2008) generally requires that any unilateral change to fundamental terms of employment, including remuneration, be made with the employee’s consent or in accordance with a clear contractual or regulatory basis. Employers contemplating redundancies must also follow the procedural safeguards set out in the relevant regulations, including consultation and notice requirements.
Whether the current measures across the sector will hold up to scrutiny — and whether affected employees pursue claims through the Labour Relations Authority — may depend on how clearly the cost-management measures are communicated, how fairly they are applied across grades and departments, and whether any voluntary alternatives, such as reduced working hours or unpaid leave schemes, are offered.
Looking Ahead
For now, both Manta Air and TMA are betting that a temporary, broadly distributed pay cut will allow them to retain their workforce intact through the downturn. Whether that bet pays off will depend largely on factors outside their control: the trajectory of the Iran–US–Israel conflict, the resilience of European and Asian source markets, and how quickly forward bookings recover. With the peak season approaching at the end of the year, the next three months will be decisive for the sector.
