Budget carrier SpiceJet swung to a Rs 262 crore loss in the December quarter of 2025–26 (FY26), as compared to a Rs 20 crore profit in the corresponding period last year, due to the impact of the new labour codes, grounded aircraft awaiting maintenance, international airspace restrictions and a weaker rupee against the dollar.
The airline’s total income declined 6.6 per cent year-on-year (YoY) to Rs 1,545 crore, while total expenses rose 9.4 per cent YoY to Rs 1,787 crore. On a sequential basis, however, the loss narrowed from Rs 622 crore in the September quarter.
SpiceJet said the implementation of the new labour codes from November 21, 2025, led to a one-time increase in employee benefit provisions, resulting in an exceptional item of Rs 19.8 crore during the quarter. The revised definition of wages and the expansion of social security benefits under the new framework increased the company’s gratuity liability, which it classified as a non-recurring expense.
The airline said non-operation of certain aircraft pending maintenance, coupled with prevailing airspace restrictions and currency depreciation, also weighed on performance. It reported a foreign exchange loss of Rs 15.6 crore for the quarter arising from the restatement of lease liabilities, compared with a forex gain in the preceding quarter.
During the quarter, the airline inducted 16 wet-lease aircraft under competitive commercial arrangements, expanding its fleet and revenue base. SpiceJet said it has raised Rs 4,172 crore in previous financial years through the issuance of equity warrants and fresh equity shares to non-promoter investors, and is deploying the funds to return grounded aircraft to service, rationalise its fleet and expand into new sectors.
The company added that it has settled past dues with certain vendors and lessors and is engaged with others to resolve outstanding obligations. It is also working to monetise grounded and spare assets to improve liquidity and reduce costs.
Based on its business plans and cash flow projections, the firm said it remains confident of meeting its liabilities as they fall due, and the results have been prepared on a going concern basis.
