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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.
"These are testing times, no doubt, but they are temporary."
In response, one pilot said the message was "reassuring", but asked if there was any timeline for release of March, April and May salaries.
Asked for comment, Malhotra told Reuters in a WhatsApp message, "I categorically deny having issued any such communication."
In a statement to Reuters, SpiceJet acknowledged there had been payment delays. "Employee payments continue to be disbursed in a phased manner, consistent with the process followed over the past several months, and a majority of employees have already been paid for March," the airline said.
The WhatsApp messages reviewed by Reuters show the impact on pilots' daily lives, at a time when concerns are mounting globally around pilot fatigue and mental health.
"Managing day to day expenses has become really really challenging and have reached a stage where we are having to seek assistance from others to manage essential financial commitments," the pilot wrote in a message that elicited 52 emoji reactions, including thumbs-up and heart emojis.
India's aviation regulator did not respond to Reuters queries on SpiceJet's salary issues and whether the uncertainty over pay could affect safety.
SEEKING GOVERNMENT HELP
SpiceJet told Reuters it was actively pursuing funding under the Indian government's so-called "Emergency Credit Line Guarantee Scheme", under which airlines can access seven-year government-guaranteed loans of up to 15 billion rupees ($156.74 million).
"All efforts are being made to achieve normalcy," SpiceJet said, adding that "extraneous factors", including the ongoing Middle East crisis, were weighing on operations and cash flows. The airline said it expected to normalise business activities over the next few months.
SpiceJet has an operational fleet of 21 aircraft. The airline said on Monday it had returned a Boeing 737 MAX jet to commercial service and finalised a lease including some crew for three Airbus A320 aircraft, which are scheduled to join its fleet in July, to meet growing passenger demand.
Its stock has fallen 60% this year, versus a 13.8% decline for India's biggest airline, IndiGo.
SpiceJet's scheduled flights fell to 3,053 in May from 4,494 in January, according to data from aviation analytics firm OAG.
FINANCIAL WOES
High taxes, fierce competition and supply-chain snags have driven Indian airlines Kingfisher, Jet Airways and Go First into bankruptcy over the last 15 years.
SpiceJet, which launched flights under its current brand in 2005, has deferred pay to staff at various periods of financial trouble dating back to at least 2014, according to reports by Reuters and Indian media.
SpiceJet's more recent decline followed the global Boeing 737 MAX grounding in 2019, which left roughly a tenth of the airline's then-fleet grounded. Its recovery was then hit by the COVID-19 pandemic and a host of legal and payment disputes.
The airline has reported annual losses since 2019, except in the year ended March 2025, when it posted a small profit after recognising a one-time gain from settlements with lessors.
At least two aircraft lessors have served payment default notices to the airline this year, said a source with direct knowledge of the matter. SpiceJet did not comment on the default notices.
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.
"These are testing times, no doubt, but they are temporary."
In response, one pilot said the message was "reassuring", but asked if there was any timeline for release of March, April and May salaries.
Asked for comment, Malhotra told Reuters in a WhatsApp message, "I categorically deny having issued any such communication."
In a statement to Reuters, SpiceJet acknowledged there had been payment delays. "Employee payments continue to be disbursed in a phased manner, consistent with the process followed over the past several months, and a majority of employees have already been paid for March," the airline said.
The WhatsApp messages reviewed by Reuters show the impact on pilots' daily lives, at a time when concerns are mounting globally around pilot fatigue and mental health.
"Managing day to day expenses has become really really challenging and have reached a stage where we are having to seek assistance from others to manage essential financial commitments," the pilot wrote in a message that elicited 52 emoji reactions, including thumbs-up and heart emojis.
India's aviation regulator did not respond to Reuters queries on SpiceJet's salary issues and whether the uncertainty over pay could affect safety.
SEEKING GOVERNMENT HELP
SpiceJet told Reuters it was actively pursuing funding under the Indian government's so-called "Emergency Credit Line Guarantee Scheme", under which airlines can access seven-year government-guaranteed loans of up to 15 billion rupees ($156.74 million).
"All efforts are being made to achieve normalcy," SpiceJet said, adding that "extraneous factors", including the ongoing Middle East crisis, were weighing on operations and cash flows. The airline said it expected to normalise business activities over the next few months.
SpiceJet has an operational fleet of 21 aircraft. The airline said on Monday it had returned a Boeing 737 MAX jet to commercial service and finalised a lease including some crew for three Airbus A320 aircraft, which are scheduled to join its fleet in July, to meet growing passenger demand.
Its stock has fallen 60% this year, versus a 13.8% decline for India's biggest airline, IndiGo.
SpiceJet's scheduled flights fell to 3,053 in May from 4,494 in January, according to data from aviation analytics firm OAG.
FINANCIAL WOES
High taxes, fierce competition and supply-chain snags have driven Indian airlines Kingfisher, Jet Airways and Go First into bankruptcy over the last 15 years.
SpiceJet, which launched flights under its current brand in 2005, has deferred pay to staff at various periods of financial trouble dating back to at least 2014, according to reports by Reuters and Indian media.
SpiceJet's more recent decline followed the global Boeing 737 MAX grounding in 2019, which left roughly a tenth of the airline's then-fleet grounded. Its recovery was then hit by the COVID-19 pandemic and a host of legal and payment disputes.
The airline has reported annual losses since 2019, except in the year ended March 2025, when it posted a small profit after recognising a one-time gain from settlements with lessors.
At least two aircraft lessors have served payment default notices to the airline this year, said a source with direct knowledge of the matter. SpiceJet did not comment on the default notices.
