𝗦𝗽𝗶𝗰𝗲𝗝𝗲𝘁 𝗣𝗶𝗹𝗼𝘁𝘀 𝗨𝗻𝗽𝗮𝗶𝗱 𝗦𝗶𝗻𝗰𝗲 𝗠𝗮𝗿𝗰𝗵 𝗮𝘀 𝗔𝗶𝗿𝗹𝗶𝗻𝗲 𝗦𝗲𝗲𝗸𝘀 𝗘𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆 𝗟𝗼𝗮𝗻

Many SpiceJet pilots have not received salaries since March. The cash-strapped airline is seeking an emergency loan under a government-backed credit scheme.

Reuters reviewed internal messages from the airline. Key details include:

  • SpiceJet had 375 pilots on its rolls as of March
  • Two pilots told Reuters salary payments had been delayed for several months
  • The news agency reviewed messages from a WhatsApp group with more than 180 members
  • The group includes pilots who fly Boeing aircraft and at least one senior airline official

Virendra Malhotra serves as senior vice president of flight operations at SpiceJet. He sent a message to employees on May 26. He acknowledged the difficulties from the delayed payments. He wrote the remaining portion of February salaries would be released soon. He called the delays temporary. One pilot asked for a timeline for March, April, and May salaries. Malhotra later denied sending the message when Reuters contacted him.

SpiceJet admitted there had been delays in paying employees. The airline said employee payments continue to be disbursed in a phased manner. It added a majority of employees have already been paid for March.

The WhatsApp messages showed the impact on pilots' personal finances. One pilot wrote managing day-to-day expenses has become challenging. The pilot added some must seek assistance from others to manage essential financial commitments. The message received 52 emoji reactions.

SpiceJet said it is trying to secure funding through the Emergency Credit Line Guarantee Scheme. The program allows airlines to access government-backed loans of up to 15 billion rupees. The airline said all efforts are being made to achieve normalcy. It blamed extraneous factors, including the ongoing Middle East crisis, for affecting operations and cash flows. It expects business activities to normalise in the coming months.

Market position and operations:

  • SpiceJet once held a 15% domestic market share in India as the second-largest airline
  • It now holds a 3.4% share and ranks as the fourth-largest carrier
  • The airline currently operates 21 aircraft
  • On Monday, it said it had brought a Boeing 737 MAX aircraft back into service
  • It also finalised a lease agreement for three Airbus A320 aircraft expected to join the fleet in July

Financial and industry data:

  • The airline's shares have fallen 60% this year
  • IndiGo's stock has declined 13.8% in the same period
  • Data from aviation analytics firm OAG showed SpiceJet operated 3,053 scheduled flights in May
  • It operated 4,494 flights in January

SpiceJet has faced financial difficulties before. The airline began operating under its current brand in 2005. It has delayed employee salaries during previous periods of financial stress dating back to at least 2014.

Its recent troubles began after the global grounding of Boeing 737 MAX aircraft in 2019. The grounding affected around a tenth of its fleet. The airline's recovery was later hit by the COVID-19 pandemic. Several legal and payment disputes also caused problems.

SpiceJet has reported annual losses every year since 2019. The exception was the financial year ended March 2025. It recorded a small profit after a one-time gain from settlements with aircraft lessors.

A source with direct knowledge of the matter said at least two aircraft lessors had issued payment default notices to the airline this year. SpiceJet did not comment on the notices.