Fighting For Survival: Inside SpiceJet’s Deepening Financial And Operational Crisis
· Free Press Journal
Mumbai: On April 16, a SpiceJet aircraft's wingtip collided with an Akasa Air aircraft at the Delhi International Airport, clipping the aircraft's wingtip. The incident, although serious in nature, is negligible against the heap of issues the airline is facing since the past few years.
Worst phase in airline's history
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Once a formidable challenger in the Indian skies, budget carrier SpiceJet is currently navigating one of the most turbulent chapters in its history. As of April 2026, the airline is grappling with a severe cash crunch, a rapidly shrinking fleet, mounting legal liabilities, and an increasingly demoralised workforce facing prolonged salary delays.
The low cost carrier, co-founded and owned by Ajay Singh in 2005, was once a major player in the Indian domestic market even while renowned airlines like Jet Airways and Kingfisher were dominating the market. In 2014, the airline occupied 17.4% of market share, which has gradually come down to 2.8% as of 2025. Even on the international routes, the airline held 6.84% share among all the Indian airlines, which came down to 3.99% in 2025.
Operational fleet down to 35 aircraft
Perhaps the most visible sign of SpiceJet's crisis is its shrinking footprint on the tarmac. While the airline once boasted an operational fleet of over 50 aircraft, recent reports indicate a drastic reduction. Currently, SpiceJet is operating only about 35 aircraft, including wet-leased planes. This is a stark contrast to the company's ambitious fleet expansion announcements made just a year prior.
The contraction is largely driven by an inability to service lease rentals and engine maintenance costs. A significant portion of the airline's original fleet remains grounded due to a lack of funds for spare parts and regular overhauls. The airline had announced to ungrounded 10 Boeing 737 aircraft by April 2026 but any development on that front is still awaited.
Rs 197 crore loss in Q3 of FY26
The shortage of aircraft has led to the airline balance sheet bleeding in red. SpiceJet’s financial health has deteriorated to a critical point, with auditors repeatedly expressing doubts about the company's ability to continue as a going concern. In the third quarter of FY26, the airline reported a net loss of Rs197 crore, a significant improvement from Rs448 crore loss in the second quarter.
Overall, the airline's losses and liabilities are estimated to be in thousands of crore. Despite multiple attempts at capital infusion over the last two years, the airline's fundamental operational challenges have pushed it to the brink, raising serious questions about its long-term viability.
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The brunt of the financial crisis is currently being borne by the airline’s roughly 6,800-strong workforce. Multiple employees, including senior executives, have reported that the airline has failed to pay their salaries from the last two to three months. In a desperate bid to cut costs, the airline's management is also said to be initiating severe workforce reduction measures.
In the last few years, the airline has reportedly placed several employees, on multiple occasions, on leave without pay for several months. While technically not layoffs, this sudden loss of income leaves hundreds of staff members financially stranded.
Despite the grim outlook, SpiceJet maintains that it is seeking further capital infusion and government support. The airline is said to apply for an additional Rs2,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) being drafted by the union government. However, with competitors rapidly expanding and grabbing market share, SpiceJet faces an uphill battle to clear its massive debt pile, regain employee trust, and keep its remaining planes in the air.
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