SpiceJet falls behind on supplier bills, salaries and flight schedules

what happened

Moody's reports that India's SpiceJet is short of cash across its operations, struggling to keep planes in the air, settle supplier invoices and pay staff on time. Between April and September 2026, the carrier went past the 45-day legal deadline on more than 85% of invoices from small suppliers, leaving 63.03 crore rupees unpaid. The figures come from a half-yearly filing submitted to the corporate affairs ministry on October 30.

Flight performance has deteriorated as well. According to DGCA data, nearly 40% of SpiceJet's flights in September ran more than two hours late, and roughly one in five was scrapped. Its domestic market share slid to a record 0.6%, below Star Air's 0.7%. Only nine of its 12 aircraft are operating, with the other three grounded over unpaid lease rent.

Two employees told Moody's that some salary dues have been outstanding for more than four months. SpiceJet has not released results for the March quarter, the full year to March 2026, or the June and September quarters. Its last reported loss was 262 crore rupees in the December quarter. CareEdge cut its long-term bank rating to B+ in April 2026. Elara Capital analyst Abhinil Dahiwale said the airline "is in desperate need of investors and a cash infusion to get operations in order."

why it matters

For markets, the story points to serious strain on SpiceJet's balance sheet. Total debt stood at 4,218.5 crore rupees as of March 2025, including 3,329.3 crore in lease obligations. A cash shortfall and the need to raise fresh capital create risks for shareholders and creditors, while direct spillover to the wider Indian aviation sector looks limited.

market impact

SpiceJet shares: cash shortfall and need for new capital weigh on the stock

• ▼SpiceJet shares pressure down — cash shortage and need for fresh capital weigh on the stock

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