If hard numbers tell a story, low-cost private airline SpiceJet seems to be flying dangerously low these days. And rapidly falling market share is just one part of the story. In July this year, the Ajay Singh-promoted company saw its domestic share fall to an all-time low of 1.9%, compared to Akasa Air’s 5.5%. The three-year-old Akasa has also soared past SpiceJet to become the country’s third-largest airline by revenue.
The fall has been steep, indeed. SpiceJet, in fact, ferried 246,000 passengers on its domestic routes in the whole of July. The number is even lower than the weekly passenger count of the airline 10 years ago. SpiceJet is left with only 300-odd crore in free cash as of June-end, compared with 700 crore in March 2025.
The drop in market share coincided with the company slipping into the red in the June quarter after two consecutive quarters of profits. It recorded a loss of 234 crore in Q1FY26 as against a profit of 158 crore recorded in the same quarter a year ago. Revenue has plunged 40% to 1,200 crore in the same time frame.
SpiceJet’s dwindling operational fleet
That’s not all. From 100 aircraft in 2015, SpiceJet’s fleet has dwindled to 56 by June-end, out of which the operational fleet is less than half at just 21, with nearly a third consisting of the small Bombardier Q400 limited-range aircraft. Investors have also shown a loss of hope. SpiceJet’s stock has tanked 61% in a year. It hit a 52-week low on the BSE in August to 31.25, while the benchmark Sensex has corrected by 1.3% during the same period.
The airline’s employees are losing out, too. Several of its employees had yet to receive their salaries for July and August. SpiceJet says as of September 7, more than 60% of the employees received their August salary, and the balance is being cleared in line with the schedule.
In a detailed response to FE’s queries, SpiceJet said its domestic market share needs to be seen in the context of the overall network strategy. “Around 50% of our capacity is currently deployed in international markets,” a company spokesperson said, responding to FE queries.
“SpiceJet’s primary focus is on profitable and sustainable growth, delivering value to our stakeholders and ensuring on-time performance. Market share is a natural outcome of these priorities and will strengthen as we induct more aircraft,” he added.
The airline’s grounded fleet of 35 planes (up from 30 in September 2024) comprises the single-aisle Boeing 737 family aircraft, which is its flagship. However, SpiceJet stated that its operational fleet will be enhanced by the end of FY26. The company is aiming to more than double its active fleet to 45 in the same period.
SpiceJet’s fleet expansion plans
“We have finalised lease agreements for 10 Boeing 737 aircraft, with inductions commencing October 2025. These measures will significantly boost our operational reliability and network reach in the months ahead,” said the spokesperson.
A total of 19 engines have been dispatched by SpiceJet to engine shops across the globe, including 7 engines for Boeing 737 NG aircraft, 6 engines for Boeing 737 MAX aircraft, and 6 engines for Q400 aircraft.
“This number of grounded planes will progressively reduce as overhauled engines are received and re-inductions are completed,” the spokesperson added. The airline currently operates direct flights between 127 city pairs, and targets to close FY26 with 275 daily flights. Discussions are underway for additional inductions of narrow-body and wide-body aircraft during October and November 2025, the company said.
“SpiceJet’s qualified institutional placement (QIP) of `3,000 crore shall allow repayment of outstanding dues and induction of aircraft on ground, which has commenced. We reckon a recovery shall be gradual with a full turnaround to be a key monitorable,” said Nuvama Research in its latest report.
“Like in some other industries, during lean periods, SpiceJet follows a phased disbursement schedule that continues over a few days. Our employees are well aware of this schedule, which has been a consistent practice, and there has been no change or deviation from the practice,” the spokesperson added.