SpiceJet is running late on three fronts: flights, supplier payments, salaries
SpiceJet Ltd is struggling to keep its planes flying, pay its suppliers, and clear employee salaries, with its cash crunch spilling into day-to-day operations.
The strain is most evident in its supplier payments. Between April and September, the airline missed the 45-day legal payment deadline on more than 85% of invoices from small suppliers, leaving ₹63.03 crore unpaid, according to its latest regulatory filing.
Flight operations have also taken a hit. In September, nearly two in five SpiceJet flights were delayed by more than two hours, while one in five was cancelled, according to data from the Directorate General of Civil Aviation (DGCA).
Employees, too, have been caught in the squeeze. Salary payments have been delayed, with some dues reportedly outstanding for more than four months, according to two company employees.
The mounting cash crunch is reflected in the airline’s shrinking footprint. Its domestic market share fell to a record low of 0.6% in September, below regional carrier Star Air’s 0.7%. Just nine of its 12 aircraft are flying; the other three remain grounded as the Ajay Singh-promoted airline struggles to pay rent to lessors.
Small-supplier dues
SpiceJet’s half-yearly report submitted to the corporate affairs ministry on 30 October shows that 51.3% or ₹63.03 crore of the ₹122.93 crore owed to small businesses remained unpaid for more than 45 days in April-September 2026.
The airline paid ₹54.77 crore within 45 days, and another ₹5.13 crore remained unpaid but was not yet overdue.
The problem is widespread. A total of 7,660 invoices went unpaid over the past 45 days, making up 85.4% of all invoices, the highest share in at least two years.
On-time payments, meanwhile, dropped to their lowest level in two years, about 60% lower than the ₹135.61 crore that SpiceJet paid on time in October 2024-March 2025.
The airline was in a worse position in April-September 2024, when it had ₹94.14 crore in overdue payments, accounting for about 53% of its total micro, small and medium enterprises (MSME) dues.
The airline has cited the same reason for almost every overdue entry: “Invoice received late.”
Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, buyers must pay MSMEs within 45 days; otherwise, they owe compound interest at three times the bank rate notified by the Reserve Bank of India.
“At present, SpiceJet has been able to make timely payments to oil marketing companies, which has allowed it to continue scheduling flights and selling tickets. While the airline is not insolvent, rising supplier dues, increase in cancellations, customer complaints, and delayed salary payments point to clear signs of financial strain,” said Abhinil Dahiwale, research analyst at Elara Capital.
“The airline is in desperate need of investors and a cash infusion to get operations in order,” he added.
Mounting losses
The payment delays come as SpiceJet struggles to restore its financial health.
The airline has not yet shared its results for the March quarter, the full year ended March 2026, the June quarter and the September quarter, leaving investors and creditors without an updated view of its finances.
It last reported a net loss of ₹262 crore in the December quarter of fiscal year 2025-26 (FY26), after a ₹621 crore loss in the previous quarter.
CareEdge Ratings lowered the airline’s long-term bank rating to B+ in April 2026, citing ongoing losses, a weak financial state, and tight cash flow. Its total debt was ₹4,218.5 crore as of March 2025, including ₹3,329.3 crore in lease payments owed.
Mint's queries emailed to SpiceJet, ministry of corporate affairs and the DGCA remained unanswered.
Operational decline
SpiceJet carried about 73,000 domestic passengers in September, compared to 592,000 in January, as its market share fell from 3.9% to 0.6%, according to DGCA data.
The cancellation rate rose from 1.44% in January to 20.29% in September, the highest among all carriers, and more than 17 times the industry average of 1.15%.
On-time performance dropped from 56.8% to 16.6%, meaning only about one in six flights left on time.
Passenger frustration is spilling onto social media with posts about delays and sudden cancellations. Recently, an argument broke out between passengers and SpiceJet staff at the Delhi airport. It escalated after an employee allegedly said, “SpiceJet sasta hai, isliye aaye ho aap (You chose SpiceJet because it is cheap)."
The share of flights delayed by more than two hours rose more than fivefold, from 7.2% to 39.36%, compared with an industry average of 1.19%.
In September, delays affected 35,956 SpiceJet passengers, more than IndiGo’s 30,619, even though IndiGo carried 100 times as many people.
Civil aviation minister K. Rammohan Naidu said in September that the DGCA was carrying out operational and financial scrutiny of SpiceJet, with passenger convenience and safety as key priorities.