SpiceJet funding crunch delays pilot pay, messages show, as it seeks state-backed loan : Indian Aviation NewsAviation India

Tuesday, June 09, 2026

SpiceJet funding crunch delays pilot pay, messages show, as it seeks state-backed loan

Indian airline SpiceJet has delayed salary payments to many of its pilots since March, internal messages seen by Reuters show, as the cash-strapped carrier said it is seeking an emergency loan under a government-backed credit scheme to help stabilise operations.

SpiceJet was India's second-largest domestic carrier by market share in 2019, carrying roughly 15% of passengers, but that has since fallen to a fourth-place share of 3.4%. Its long-standing financial troubles have been worsened ‌by the Middle East conflict, which ⁠has pushed ⁠up fuel prices and restricted airspace access, pressures that have also hit larger rivals IndiGo and Air India.

SpiceJet 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.

In one message, SpiceJet's senior vice president of flight operations, Virendra Malhotra, wrote on May 26 that he was aware "that all of you are going through a difficult phase owing to the delay in salary disbursement" and said the balance of February salaries would be released shortly.

09/06/2026 Economic Times

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