NEW DELHI: Cash strapped airline SpiceJet is struggling to pay its employees with salary payments to many of its pilots pending since March. According to a Tuesday report by Reuters, the loss making carrier is seeking an emergency loan under a government-backed credit scheme to stabilise operations.
When contacted, SpiceJet spokesperson said that employee payments are being disbursed in a phased manner, consistent with the process followed over the past several months. It added that employee payments remain a priority for the company and it remain committed to meeting all their obligations, as they have consistently done in the past.
“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,” stated the spokesperson.
SpiceJet, which at present has an operational fleet of 21 aircraft, had 375 pilots as of March and has had salary payments pending for several months, according to two pilots and a Reuters review of chats from a WhatsApp group with more than 180 members, including pilots who fly Boeing aircraft and at least one senior airline official.
The carrier spokesperson said that the company is actively pursuing funding under the ECLGS scheme, which is expected to further strengthen its financial position. Airlines across the globe have been hit by rising jet fuel prices and frequent airspace closures in West Asia. In India, the impact is severe due to sharp reduction in rupee value against the dollar.
Last month, the Centre launched the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, earmarking Rs 5,000 crore to provide targeted credit and liquidity support to scheduled passenger airlines. This latest variant of the scheme was designed to help carriers navigate financial stress and short-term liquidity mismatches resulting from airspace closures and global conflicts.
SpiceJet reported Rs 262 crore loss in the December quarter of 2025–26 (Q3FY26), as compared to a Rs 20 crore profit in the corresponding period last year. The airline has reported annual losses since 2019, except in the year ended March 2025, when it posted a small profit after recognising a one-time gain from settlements with lessors.
