SpiceJet Faces Financial Challenges as Pilot Salaries Go Unpaid

SpiceJet, an Indian airline facing financial difficulties, is currently struggling to fulfil its payroll obligations. Reports indicate that many pilots have not received their salaries since March 2026. The airline is looking for an emergency loan under the Emergency Credit Line Guarantee Scheme (ECLGS) to stabilise its operations.

A spokesperson for SpiceJet confirmed that salary payments are being disbursed gradually, adhering to the approach taken over recent months. The airline reiterated its commitment to prioritising employee payments and fulfilling all obligations. The spokesperson stated, "Like the rest of the aviation industry, SpiceJet is operating in a challenging environment shaped by external factors, including the situation in West Asia and its impact on operating costs and cash flows across the sector. Despite these challenges, the airline continues to maintain operational stability and service reliability."

At present, SpiceJet operates a fleet of 21 aircraft and employed 375 pilots as of March. According to reports from two pilots and a review of communications from a pilots' WhatsApp group, the airline has pending salary issues that have persisted for several months. The spokesperson revealed that the company is actively pursuing funding under the ECLGS scheme, which aims to enhance its financial standing.

The airline industry globally has been impacted by rising fuel prices and intermittent airspace closures in West Asia. In India, these issues have been exacerbated by the significant depreciation of the Indian rupee against the US dollar.

Recently, the Indian government introduced ECLGS 5.0, allocating ₹5,000 crore (approximately £500 million) to assist scheduled passenger airlines with credit and liquidity support. This version of the scheme is specifically designed to help airlines navigate financial hardships and short-term liquidity challenges stemming from airspace disruptions and international conflicts.

SpiceJet's financial woes are evident in its performance reports, showing a loss of ₹262 crore (approximately £26 million) in the third quarter of the financial year 2025-26, down from a profit of ₹20 crore (approximately £2 million) in the same quarter of the previous year. The carrier has reported annual losses since 2019, apart from a small profit in the year ending March 2025, which was attributed to a one-off gain from settlements with aircraft lessors.