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What is the story about?
Low-cost carrier SpiceJet has responded to concerns around its financial position after flight disruptions last week at Mumbai Airport triggered financial distress concerns.
The airline did not deny financial strain but pushed back on specific claims related to payments, maintenance, and disruptions.
Sources told CNBC-TV18 that SpiceJet is operating on a cash-and-carry basis for key payments such as airport charges and aviation turbine fuel.
The airline calls it "advance payment mechanism", leaving room for interpretation on its financial health. “SpiceJet is not operating on a cash-and-carry basis at airports or with oil companies. We follow an advance payment mechanism with oil companies, which has been in place for a long time.”
Responding to allegations of delayed aircraft maintenance due to cash crunch and salary backlogs, SpiceJet said “Aircraft safety and maintenance are a top priority, and adequate funds are allocated to ensure there is no compromise.”
Salary Delay Suggests Cash Crunch
“Employee payments remain a priority and are being disbursed in a phased manner.”
While denying disruption to safety, the acknowledgement of phased salary payments suggests ongoing cash management measures.
Shrinking Fleet Concerns
SpiceJet currently operates about 21 aircraft, including 8 wet-leased planes, which are typically short-term arrangements.
The airline rejected concerns that returning these aircraft would reduce capacity: “We do not foresee any reduction in operational capacity.”
It added that it is in talks with lessors for additional aircraft and will benefit from improved availability of wet and damp leases and is working to bring grounded aircraft back into service
The airline also cited global supply chain and engine availability issues as key constraints.
Operational Disruptions ‘Not Payment-Linked’
On reports that financial stress is causing flight cancellations and delays, SpiceJet maintained: “Our operations are not being impacted by any payment-related issues.”
It attributed disruptions, where they occur, to routine operational or external factors.
SpiceJet’s is not directly denying any financial stress but strongly defending operational continuity. It frames current challenges as industry-wide, not company-specific.
The airline is currently operating around 125 flights daily, with a market share of 3.8% in India’s domestic aviation market versus Akasa Air's 5.4%.
On-time performance (OTP) of 43% in March 2026 is lowest among Indian airlines.
The data points to execution challenges, even as the airline maintains that operations are stable.
₹3,000 Crore QIP
SpiceJet raised ₹3,000 crore in September 2024 via a Qualified Institutional Placement (QIP). However, industry sources indicate that a significant portion of these funds was used to clear pending dues, rather than for aggressive expansion.
Even as SpiceJet asserts operational stability, low on-time performance, phased salary payouts, and a deleveraging-led capital raise point to ongoing stress beneath the surface. Whether the airline can translate stability into sustained recovery remains the key question.
The airline did not deny financial strain but pushed back on specific claims related to payments, maintenance, and disruptions.
Sources told CNBC-TV18 that SpiceJet is operating on a cash-and-carry basis for key payments such as airport charges and aviation turbine fuel.
The airline calls it "advance payment mechanism", leaving room for interpretation on its financial health. “SpiceJet is not operating on a cash-and-carry basis at airports or with oil companies. We follow an advance payment mechanism with oil companies, which has been in place for a long time.”
Responding to allegations of delayed aircraft maintenance due to cash crunch and salary backlogs, SpiceJet said “Aircraft safety and maintenance are a top priority, and adequate funds are allocated to ensure there is no compromise.”
Salary Delay Suggests Cash Crunch
“Employee payments remain a priority and are being disbursed in a phased manner.”
While denying disruption to safety, the acknowledgement of phased salary payments suggests ongoing cash management measures.
Shrinking Fleet Concerns
SpiceJet currently operates about 21 aircraft, including 8 wet-leased planes, which are typically short-term arrangements.
The airline rejected concerns that returning these aircraft would reduce capacity: “We do not foresee any reduction in operational capacity.”
It added that it is in talks with lessors for additional aircraft and will benefit from improved availability of wet and damp leases and is working to bring grounded aircraft back into service
The airline also cited global supply chain and engine availability issues as key constraints.
Operational Disruptions ‘Not Payment-Linked’
On reports that financial stress is causing flight cancellations and delays, SpiceJet maintained: “Our operations are not being impacted by any payment-related issues.”
It attributed disruptions, where they occur, to routine operational or external factors.
SpiceJet’s is not directly denying any financial stress but strongly defending operational continuity. It frames current challenges as industry-wide, not company-specific.
The airline is currently operating around 125 flights daily, with a market share of 3.8% in India’s domestic aviation market versus Akasa Air's 5.4%.
On-time performance (OTP) of 43% in March 2026 is lowest among Indian airlines.
The data points to execution challenges, even as the airline maintains that operations are stable.
₹3,000 Crore QIP
SpiceJet raised ₹3,000 crore in September 2024 via a Qualified Institutional Placement (QIP). However, industry sources indicate that a significant portion of these funds was used to clear pending dues, rather than for aggressive expansion.
Even as SpiceJet asserts operational stability, low on-time performance, phased salary payouts, and a deleveraging-led capital raise point to ongoing stress beneath the surface. Whether the airline can translate stability into sustained recovery remains the key question.
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