New Delhi: Budget airline SpiceJet is reportedly grappling with escalating operational and financial difficulties, with frequent flight cancellations, a shrinking fleet and mounting unpaid dues putting increasing pressure on its day-to-day functioning.
According to multiple media reports, the airline is cancelling around 15 to 20 flights every day despite operating only about 65 scheduled services. Passengers have also faced repeated delays, with some flights reportedly being cancelled after being held up for three to five hours, adding to concerns over the reliability of its operations.
Sources cited in the reports attributed the disruptions to outstanding payments to aircraft lessors, oil marketing companies, airport operators and ground-handling agencies. The airline is reportedly operating largely on a cash-and-carry basis, meaning it must make advance payments for essential services, leaving it with limited financial flexibility to manage routine expenses.
The pressure is also reflected in the airline’s shrinking fleet. SpiceJet is reportedly operating with just 12 aircraft, while three additional planes remain grounded due to payment-related issues involving lessors. The limited availability of operational aircraft has further complicated its ability to maintain flight schedules and restore normal services.
The financial strain is reportedly affecting employees as well, with sources claiming that staff members have not received their salaries since June 2026.
SpiceJet’s operational difficulties come against the backdrop of continued financial losses. For the quarter ended September 2025, the airline reported a net loss of Rs 621 crore, significantly higher than the Rs 458 crore loss recorded in the corresponding quarter of the previous year.
Its revenue declined 13.4 per cent year-on-year to Rs 792 crore from Rs 915 crore. The airline also reported an operating loss of Rs 297 crore during the quarter.
Grounded aircraft continued to weigh on its finances, accounting for Rs 120 crore in costs, while another Rs 30 crore was spent on return-to-service activities. Its EBITDAR loss, excluding foreign exchange impact, widened to Rs 203.8 crore from Rs 58.87 crore a year earlier, indicating mounting pressure on its operating performance.
However, some passenger-related indicators offered a relatively positive picture. SpiceJet reported a passenger load factor of 84.3 per cent during the quarter, while passenger revenue per available seat kilometre improved to Rs 4.04 from Rs 3.91 in the year-ago period.
The airline’s operational and financial challenges have also weighed on investor sentiment. SpiceJet shares closed 0.65 per cent lower at Rs 7.68 on the BSE.
The combination of limited aircraft availability, payment disputes and sustained financial losses has raised questions about the carrier’s ability to stabilise operations and rebuild passenger confidence.
–IANS