SpiceJet has fallen behind newer rival Akasa Air in fleet size, marking a sharp reversal for a carrier once among the country’s major low-cost operators, as financial stress, legal disputes and operational disruptions continue to weigh on its recovery.
SpiceJet is currently operating just 21 aircraft, down from 33 in December, and well below Akasa’s 38 aircraft. The decline reflects a steady erosion of capacity as lease agreements expire and aircraft are returned, exposing the airline’s dependence on short-term wet leasing to sustain operations in recent years.
The immediate trigger has been the return of multiple leased aircraft. Over the past few weeks, the airline has redelivered several Boeing 737-800s taken on wet lease from foreign operators and returned three Boeing 737-8 MAX aircraft leased from Ascend Airways following the lessor’s shutdown. Its wet-leased fleet has reduced from 13 aircraft to seven, sharply limiting available capacity.
Financial Strain
Behind the fleet contraction lies a prolonged period of financial strain. The airline has reported widening losses in recent quarters, including a net loss of about Rs 621 crore in the September quarter alongside a decline in revenue. Its accumulated losses are estimated at over Rs 8,600 crore, while current liabilities continue to exceed assets, prompting auditors in the past to flag concerns over its ability to continue as a going concern. These constraints have limited its ability to secure long-term leases, forcing reliance on costlier and less stable wet-lease arrangements.
Legal disputes have added to the strain. The airline has faced multiple proceedings from aircraft and engine lessors over unpaid dues, at times resulting in grounding of planes. It has also been involved in a long-running dispute with former promoter Kalanithi Maran and Kal Airways, alongside overseas rulings requiring payments to lessors. These cases have periodically disrupted operations and affected lessor confidence.
Legal Battles
Operationally, the impact is visible across the network. SpiceJet has cut flight frequencies across major metro routes and earlier shut operations at several stations, including Ayodhya, Port Blair, Bangkok, Phuket and Udaipur. International operations have been scaled back to Dubai and Sharjah, while domestic connectivity continues with fewer departures.
When contacted, a SpiceJet spokesperson said some aircraft had been returned following the completion of lease terms and that the airline remains in discussions with existing and prospective lessors for fresh inductions. The spokesperson added that a recent fundraise has strengthened liquidity and supports efforts to stabilise operations, with another capital raise under consideration.
Industry executives said the airline is now focused on aligning capacity with available aircraft and maintaining schedule reliability. SpiceJet has described the network adjustments as calibrated and temporary and is targeting a fleet of 55–60 aircraft by the winter schedule through fresh inductions and the revival of grounded planes.
Whether that recovery materialises will depend on its ability to secure capital, resolve disputes and rebuild lessor confidence. For now, the shrinkage in fleet, which places it below a newer rival, reflects how financial and legal pressures have translated into operational contraction.