Many SpiceJet pilots and employees are left waiting for their salaries since March, according to internal messages reviewed by Reuters. The news comes as the cash-strapped airline is seeking an emergency loan under a government-backed credit scheme to support its operations.
Delayed salaries and operational strain
As of March, SpiceJet had 375 pilots on its rolls. Two pilots told Reuters that salary payments had been delayed for several months. The agency also reviewed messages exchanged in a WhatsApp group with more than 180 members, including pilots flying Boeing aircraft and at least one senior airline official.
In a message sent to employees on May 26, SpiceJet's senior vice president of flight operations, Virendra Malhotra, acknowledged the difficulties arising from the delayed payments. "I am aware that all of you are going through a difficult phase owing to the delay in salary disbursement," he wrote, adding that the remaining portion of February salaries would be released shortly. "These are testing times, no doubt, but they are temporary," he was quoted by Reuters as saying.
One pilot replied that the text was "reassuring", but asked if there was any timeline for the release of March, April and May salaries. However, when contacted by Reuters, Malhotra denied sending the message. "I categorically deny having issued any such communication," he said in a WhatsApp message.
SpiceJet admitted there had been delays in paying employees. "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 in a statement to Reuters.
The WhatsApp messages also showed the impact the delays have had on pilots' personal finances. "Managing day to day expenses has become really really challenging and have reached a stage where we are having to seek assistance from others to manage essential financial commitments," one pilot wrote. The message received 52 emoji reactions, including thumbs-up and heart emojis.
Government-backed loan and recovery efforts
SpiceJet said that it is trying to secure funding through the government's Emergency Credit Line Guarantee Scheme, which allows airlines to access government-backed loans of up to 15 billion rupees. "All efforts are being made to achieve normalcy," the airline said, adding that "extraneous factors", including the ongoing Middle East crisis, had affected operations and cash flows. It said it expects business activities to normalise in the coming months.
The airline said the Middle East conflict has added to its financial troubles by increasing fuel costs and limiting access to certain airspace. According to the report, these challenges have also affected larger rivals IndiGo and Air India.
SpiceJet currently operates 21 aircraft. On Monday, it said it had brought a Boeing 737 MAX aircraft back into service and finalised a lease agreement for three Airbus A320 aircraft, along with some crew members. The planes are expected to join the fleet in July to help meet rising passenger demand.
Impact on flight operations and market position
| Metric | Previous | Current |
|---|---|---|
| Domestic market share (2019 vs now) | 15% (2nd largest) | 3.4% (4th largest) |
| Scheduled flights (January vs May) | 4,494 | 3,053 |
| Aircraft in service | — | 21 |
| Share price change (2026 YTD) | — | -60% |
| IndiGo share price change (2026 YTD) | — | -13.8% |
Once India's second-largest airline with a 15% domestic market share in 2019, SpiceJet now holds a 3.4% share, making it the country's fourth-largest carrier. The airline's shares have fallen 60% this year, compared with a 13.8% decline in IndiGo's stock. Data from aviation analytics firm OAG showed that SpiceJet operated 3,053 scheduled flights in May, down from 4,494 in January.
Implications for trade and logistics
For trade executives and freight forwarders, SpiceJet's reduced flight schedule directly trims belly cargo capacity on domestic and regional routes. The Middle East crisis, which the airline cites as a factor, adds further pressure on airfreight costs and routing options. While larger carriers like IndiGo and Air India are also affected, SpiceJet's dwindling market share and fleet size compound the risk for shippers relying on its network. The planned addition of three A320s in July may provide some relief, but the airline's ability to restore normal operations hinges on securing the government-backed loan and stabilising labour relations.
What to watch
The next key milestone is July, when the three leased Airbus A320 aircraft are expected to join the fleet, and whether SpiceJet secures the 15-billion-rupee credit line under the Emergency Credit Line Guarantee Scheme.
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