SpiceJet to Lay Off 20% of Staff: Senior Officers Unpaid Since January; Only 13 Self-Owned Aircraft Remain in Fleet
SpiceJet, one of the country’s private airlines, is currently navigating a severe crisis. Due to a reduction in operational capacity, the company has decided to cut its workforce by 20%, a move that could see over 500 employees placed on unpaid leave.
The airline currently employs 6,800 staff members. Its fleet now consists of only 13 self-owned aircraft—comprising 10 Boeing jets and 3 Q400s. Additionally, 14 aircraft are currently operating under wet-lease agreements (including crew).
Senior officers have not received their salaries since January, while other employees are experiencing delays of 2–3 months in receiving their paychecks. The company has outstanding dues exceeding ₹100 crore related to GST, TDS, and PF contributions. TDS payments have not been deposited since April 2025, and GST payments have been pending for the last five months.
Trails Behind Akasa in Market Share
The airline has terminated the three-month notice periods of dozens of engineers who had tendered their resignations. Following an order issued on March 31, these employees have been instructed to leave their jobs with immediate effect.
In the domestic market, SpiceJet’s market share has plummeted to a mere 3.9%. In comparison, the relatively new airline Akasa—with a fleet of 37 aircraft and 5,000 employees—holds a market share of 4.9%. Former employees are also expressing their dissatisfaction over the non-receipt of their full and final settlement dues.
Pilot Salaries Reduced; Work Limited to 21 Days
A new policy has been introduced for pilots. They will now be required to work for 21 days and take 9 days off. Consequently, the monthly salary of Captains will drop from ₹7.5 lakh to ₹6 lakh. Airline’s Loss Rises to ₹621 Crore in July-September Quarter
Low-cost carrier SpiceJet’s consolidated net loss for the July-September quarter (Q2FY26) surged 35% year-on-year (YoY) to reach ₹621 crore. This figure stood at ₹458 crore in the corresponding quarter of the previous year. The company’s operational revenue also declined by 13% to ₹792 crore, down from ₹915 crore in the same quarter last year.
Three Reasons for SpiceJet’s Widening Losses
Rising Operating Costs: Fleet revival entails repairing older aircraft—such as fixing engines and replacing parts. SpiceJet kept several aircraft grounded (out of service) during Q2, incurring costs that amounted to ₹297 crore. Expansion efforts (adding new flights) also drove up costs, as capital was invested in purchasing or leasing new aircraft. Consequently, total operating costs (running expenses) rose by 13% YoY. The company maintains that while this represents short-term pain, it will ultimately result in a stronger fleet in the long run.
Weak Lean-Season Demand; Passenger Numbers Decline During Monsoon: “Lean-season demand” refers to the reduced volume of travel typically observed during the monsoon season (July–September). Travel activity tends to be lower during this period due to the rainy weather and the timing of holidays. SpiceJet’s revenue stood at ₹792 crore—a 13% decline from the ₹915 crore recorded the previous year. On a quarter-on-quarter (QoQ) basis, revenue fell by 29%, reflecting the higher demand levels witnessed in Q1. Although the passenger load factor remained healthy at 84.3%, overall ticket sales declined. This resulted in reduced earnings and a widening of losses. The company has expressed optimism that the situation will improve starting in Q3, coinciding with the festive season.
Supply Chain Issues: Supply chain disruptions refer to shortages of aircraft parts and engines. Several of SpiceJet’s aircraft remained grounded due to delays in engine overhauls (repairs). Global supply chain issues (such as shipment delays) resulted in the late arrival of parts. Consequently, flight operations were curtailed, and operational costs increased. This led to an operating loss of ₹297 crore in Q2. The company stated that its fleet would be fully operational in Q3; however, for the time being, this factor has remained a major contributor to its losses.
