SpiceJet has successfully cleared all pending employee provident fund (PF) dues totalling Rs 160.07 crore. These dues, which had accumulated over two years, were settled as part of the airline’s renewed commitment to employee welfare and financial accountability.

Resolving Statutory Liabilities Post-QIP Success
Following its Rs 3,000 crore capital raise through a Qualified Institutional Placement (QIP) in October 2024, the airline has also cleared all pending statutory liabilities. This includes payments for Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary arrears. By addressing these obligations, SpiceJet has enhanced its financial health and saved substantially on interest payments associated with overdue statutory dues.

Ajay Singh, Chairman and Managing Director of SpiceJet, highlighted the airline’s progress: “We are pleased to announce the clearance of all pending employee PF dues. This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees.”

Singh emphasised the company’s focus on operational excellence and sustainable growth as part of its financial turnaround strategy.

Operational Discipline and Debt Resolutions
SpiceJet has utilized its internal cash flows to meet statutory obligations over the past three months, reflecting improved operational discipline. Beyond clearing statutory dues, the airline has resolved multiple disputes with aircraft lessors and creditors, leading to a stronger balance sheet.

Recognising these efforts, Acuité Ratings & Research Limited recently upgraded SpiceJet’s credit rating by four notches. This significant upgrade reflects the airline’s strengthened financial position and operational resilience.

With its financial turnaround strategy firmly in place, SpiceJet is poised for sustainable growth. By prioritizing employee welfare, operational efficiency, and robust financial management, the airline is positioning itself to deliver superior services to its customers while ensuring long-term stability in a competitive aviation market.