Budget airline SpiceJet has been delaying salary payments to a significant portion of its workforce in recent months, predominantly impacting senior employees earning above ₹55,000 per month. According to sources familiar with the matter, while junior staff members have received their August salaries on time, Assistant Managers and higher-level staff have experienced delays ranging from 10 to 15 days. With a total workforce of 6,484 employees, including 4,894 permanent staff as per the Fiscal Year 2025 annual report, this situation has raised concerns among employees and industry observers alike.
Phased Disbursement Strategy Cited by SpiceJet:
In response to inquiries, SpiceJet stated that these salary delays are part of a “phased disbursement schedule” implemented during lean financial periods, a practice consistent with certain other industries. The company emphasized that employees are well informed about this payment schedule, which spans multiple days. As of early September, the airline confirmed that over 60% of employees had received their August salary, with the remainder expected to receive payments in accordance with the schedule. This phased approach reportedly helps manage cash flow pressures amid ongoing financial challenges.
Q2 2026 Financial Results Highlight Continuing Challenges:
SpiceJet’s financial performance in the second quarter of fiscal year 2026 highights ongoing operational and market challenges. The airline reported a consolidated net loss of ₹234 crore in Q1 FY26, sharply down from a profit of ₹158 crore in the same period last year. Revenue declined by over 34% year-on-year, impacted by grounded aircraft, geopolitical tensions, airspace restrictions, and weakened leisure travel demand. Despite these setbacks, SpiceJet’s net worth improved to a positive ₹446 crore, reflecting successful financial restructuring efforts. The airline is also actively working on fleet expansion and cost-cutting measures, including securing leases for 10 Boeing 737 planes and negotiating for additional aircraft. However, experts caution that a full turnaround will be gradual, with recovery heavily dependent on operational stability and market conditions in the coming quarters.
Financial Challenges and Operational Difficulties:
SpiceJet’s recent quarterly reports, which showed a consolidated net loss of ₹238 crore for the April–June quarter of Fiscal Year 2026, a sharp reversal from a ₹158 crore profit during the same period the previous year made its financial troubles clear. Additionally, operating revenues fell sharply by more than 34% annually. Costs related to grounded aircraft and reactivation attempts are the airline’s primary explanation for these losses. Additionally, the demand for leisure travel has been slowed by geopolitical unrest and airspace restrictions in important markets, which has made operations more difficult.
Fleet Size and Governance Concerns:
SpiceJet now only runs 18 of its 53 aircraft, with numerous planes grounded as of mid-September 2025, despite commitments to increase its fleet by at least 10 aircraft multiple times over the past year. Particularly after the contentious granting of an interest-free advance of ₹32 crore to Chairman and Managing Director Ajay Singh in 2024–2025, the airline’s governance standards have come under criticism. Given the airline’s unstable financial situation, this advance which was accepted by the nomination and pay committee and deducted from Singh’s subsequent salaries has raised concerns about financial governance. Employee morale and operational stability continue to be crucial issues for SpiceJet’s future in the competitive Indian aviation industry as it navigates these challenging times.
