SpiceJet Faces Pay Delays Amid Cash Crunch

Indian airline SpiceJet is facing mounting financial pressure, leading to delays in salary payments for many pilots since March. Internal messages reviewed by Reuters reveal growing frustration among flight crew, with some pilots reporting financial hardship as the airline works through cash-flow challenges. SpiceJet acknowledged payment delays, saying salaries are being disbursed in phases while efforts continue to restore normal operations.

The airline’s financial troubles have been intensified by rising fuel costs and airspace disruptions linked to the ongoing Middle East conflict. SpiceJet has applied for funding under India’s government-backed Emergency Credit Line Guarantee Scheme, which could provide much-needed liquidity. The carrier says it expects conditions to improve over the coming months and is taking steps to expand operations by returning aircraft to service and adding leased planes to its fleet.

Once India’s second-largest airline, SpiceJet has seen its market share shrink significantly amid years of losses, operational setbacks, and legal disputes. Flight schedules have been reduced, shares have fallen sharply this year, and aircraft lessors have reportedly issued payment default notices. Industry analysts note that the airline’s challenges reflect the intense financial pressures facing India’s aviation sector.