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New Delhi: Cash-strapped Indian carrier SpiceJet has suffered a fresh operational setback after Dubai Airports suspended its check-in services over unpaid dues of nearly 14 million UAE dirhams, or approximately Rs 35.85 crore. The restriction took effect on November 12 following repeated payment delays and non-compliance with agreed financial terms, disrupting SpiceJet’s flight operations between Dubai and India.
Dubai Airports operates both Dubai International Airport and Al Maktoum International Airport. According to people familiar with the matter, the airline had not made payments since October 13, causing its outstanding balance to reach 14 million dirhams. In an email sent to SpiceJet on November 12, Dubai Airports raised concerns over the payment status, noting that continued breaches of payment terms were increasing its financial exposure, which prompted the suspension of check-in facilities.
Four Flights Cancelled, Passengers Stranded
Following the suspension on November 12, four SpiceJet flights scheduled to depart from Dubai to Amritsar, Jaipur, Mumbai, and Delhi were cancelled. Internal airline communications attributed the cancellations to non-payment of dues to ground-handling company dnata, stating that the aircraft involved were to be operated only as ferry flights without passengers.
Earlier, Dubai Airports had permitted check-in for SpiceJet flights bound for Ahmedabad and Delhi. However, once the restriction came into force on November 12, the airline’s station manager instructed the flight operations team to keep further departures from Dubai cancelled until the issue was resolved. While the development disrupted travel plans for passengers in Dubai, the airline stated that discussions were underway with the relevant authorities to resolve the matter.
Airline Cites Bank Guarantee Cover
A SpiceJet spokesperson said the carrier is engaging with the concerned authorities and maintains sufficient bank guarantee cover, adding that efforts are underway to restore normalcy at the earliest. However, the airline did not clarify the reasons behind the payment delay or provide a timeline for clearing the outstanding dues.
The action by Dubai Airports comes at a time when SpiceJet’s financial and operational health remains under severe strain. The carrier’s fleet size has shrunk to around 12 aircraft, of which only nine are reported to be operational. Limited aircraft availability alongside recurring payment challenges has significantly weighed on its flight network.
Sharp Decline in Market Share and Pending Vendor Dues
SpiceJet’s domestic market share has fallen sharply in recent months, dropping from 3.9 percent in January 2026 to just 0.6 percent in September. Passenger traffic also declined steeply during this period, falling from roughly 5.92 lakh domestic flyers in January to about 73,000 in September.
Data from the Directorate General of Civil Aviation (DGCA) shows that 20.29 percent of SpiceJet’s scheduled flights were cancelled in September 2026, while its on-time performance at major airports fell to 16.6 percent. Furthermore, regulatory filings indicate that between April and September 2026, payments worth Rs 63.03 crore owed to small businesses and micro and small enterprises remained pending beyond the mandated 45-day period, underscoring broader supplier payment pressures as the carrier works to restore its international operations.
