SpiceJet is now again finding it tough going financially, with pilots and other employees having salaries that have been outstanding since March, while the carrier makes efforts to raise funds to ensure its continued functioning.
As per a Reuters report, delays in salaries have been reported internally and by employees, reflecting the growing financial troubles the carrier has been having to grapple with amidst rising operating expenses and other industry pressures.
This news came at a time when SpiceJet had considered funding through the government’s Emergency Credit Line Guarantee Scheme (ECLGS).
Employees raise concerns over delayed salaries
Reuters reported that several pilots have not received full salary payments for multiple months. The agency reviewed messages exchanged in an employee WhatsApp group that included pilots and airline officials.
In a message reviewed by Reuters, SpiceJet's Senior Vice President of Flight Operations, Virendra Malhotra, reportedly acknowledged employee concerns over delayed salary payments and described the situation as temporary.
Indian airline SpiceJet has delayed salary payments to many of its pilots since March, internal messages seen by Reuters show, as the cash-strapped carrier said it is seeking an emergency loan under a government-backed credit scheme to help stabilize operations…
— Reuters (@Reuters) June 9, 2026
However, when contacted by Reuters, Malhotra denied issuing the communication. SpiceJet, in a statement to Reuters, acknowledged delays in salary disbursements but said payments were being made in phases.
"Employee payments continue to be disbursed in a phased manner, consistent with the process followed over the past several months, and a majority of employees have already been paid for March," the airline said.
Employees cited in the report described growing financial stress caused by the delays, with some saying they were struggling to manage routine expenses and financial commitments.
Airline seeks emergency credit support
The airline said it is pursuing funding through the Emergency Credit Line Guarantee Scheme to improve liquidity and support operations.
According to SpiceJet, external factors, including disruptions linked to the ongoing West Asia crisis, have affected fuel costs, airspace access and cash flows. The carrier said it expects business conditions to improve in the coming months and remains focused on restoring operational stability.
On Monday, SpiceJet announced the return of a Boeing 737 MAX aircraft to service and confirmed lease agreements for three Airbus A320 aircraft, which are expected to join its fleet in July.
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Long road to recovery
SpiceJet, which once ranked as India’s second-largest airline, holding approximately 15 per cent of the domestic market share as of 2019, now has a market share of about 3.4 per cent, according to the industry sources quoted in the Reuters article. The company has faced financial difficulties regularly over the past decade, along with issues associated with the grounding of Boeing 737 MAX planes across the globe, the outbreak of coronavirus infections, and conflicts with vendors and aircraft lessors.
According to SpiceJet’s figures for the year ending March 2025, the company recorded a profit, but mostly due to payments made towards resolving one-time disagreements with aircraft lessors. In other financial years since then, SpiceJet has been registering losses on its balance sheet.
According to Reuters, SpiceJet carried out 3,053 scheduled flights in May as against 4,494 in January, amid difficulties faced by the company recently.
FAQs
Q1. Why are SpiceJet employees facing salary delays?
SpiceJet said payments are being made in phases as it deals with cash flow pressures and operational challenges.
Q2. What steps is SpiceJet taking to improve its financial situation?
The airline is seeking funding under a government-backed credit scheme and is also expanding its fleet to support operations and revenue growth.
