SpiceJet, one of India’s leading budget carriers, has responded to growing concerns over delayed salary payments by stating that the disbursements are part of a “phased schedule” followed during lean operational periods.
The clarification comes amid reports that a significant portion of the airline’s workforce has not received full salaries for August, prompting questions about financial stability and employee welfare.
A company spokesperson stated that employees understand the phased disbursement approach, which the company consistently practices during low-demand cycles.
“There has been no change or deviation from this schedule,” the airline said, adding that over 60% of employees had received their August salaries as of September 7, and the remaining payments were being processed accordingly.
Who Is Affected and How
The salary delays primarily affect senior staff, including Assistant Managers and above, with payments reportedly lagging by 10–15 days.
Employees earning up to ₹55,000 per month have received their salaries on time, according to internal sources.
This tiered approach to salary disbursement reflects the airline’s prioritization of lower-income staff during financially constrained periods.
SpiceJet employs 6,484 people, including 4,894 permanent staff, as per its FY25 annual report.
The phased payment system has been in place for several years, but its recurrence during lean quarters has drawn renewed scrutiny.
SpiceJet Financial Pressures and Operational Constraints
The salary delays coincide with a challenging financial quarter for the airline.
SpiceJet reported a consolidated net loss of ₹234 crore in Q1 FY26, a sharp reversal from the ₹158 crore profit posted in the same quarter last year.
Revenue from operations fell by 34.4% year-on-year, dropping to ₹1,120 crore from ₹1,708 crore.
The airline attributed the losses to multiple factors, including costs associated with grounded aircraft and efforts to bring them back into service.
Geopolitical tensions and airspace restrictions in key markets also dampened leisure travel demand, further straining revenue streams.
As of September 13, only 18 of SpiceJet’s 53 aircraft were operational, according to fleet tracking data.
This limited capacity has impacted both service delivery and cash flow.
Internal Financial Decisions Under Scrutiny
Adding to the controversy is the disclosure that Chairman and Managing Director Ajay Singh received an interest-free advance of ₹32 crore for a five-year term, as approved by the company’s board and remuneration committee.
The company adjusted the advance against his salary in April and May 2025 and maintains that the transaction did not prejudice its interests.
However, the timing of this financial arrangement has raised questions among employees and observers, especially as salary delays persist and operational challenges mount.
Historical Pattern of Delays at SpiceJet
This is not the first time SpiceJet has faced salary-related issues. Pilots, cabin crew, and ground staff experienced similar delays in 2022 and 2024.
In February 2024, the airline announced plans to lay off 1,400 employees—approximately 15% of its workforce—as part of cost-cutting measures.
Despite raising ₹3,000 crore through a Qualified Institutional Placement (QIP) last year to revive grounded aircraft and invest in technology, the airline continues to face liquidity challenges.
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