Cash-strapped SpiceJet faced the suspension of check-in services at Dubai International Airport over unpaid dues of about 14 million UAE dirhams, roughly equivalent to Rs 35.8 crore. Dubai Airports, which operates Dubai International Airport and Al Maktoum International Airport, reportedly suspended the services after repeated payment delays, with payments outstanding since October 13 and a warning that continued non-compliance had increased its financial exposure.
The disruption led to the cancellation of four SpiceJet flights from Dubai to Amritsar, Jaipur, Mumbai and Delhi on November 12. According to an internal airline communication, the cancellations cited non-payment to ground-handling company dnata, and the affected aircraft were rescheduled to operate as ferry flights without passengers. Before the suspension took full effect, dnata was permitted to process check-ins for two delayed flights, SG-5115 to Ahmedabad and SG-5106 to Delhi. Internal emails also show the Dubai Civil Aviation Authority summoned SpiceJet's station manager over the failure to announce cancellations, after which the manager directed the operations team to cancel remaining departures until the dispute was resolved.S1S2
A SpiceJet spokesperson said the airline was working with the relevant authorities to settle the matter and maintained that adequate bank guarantees were available, expressing confidence the issue would be resolved soon. The Dubai episode comes as the airline struggles with financial constraints and declining operations. According to a Mint report dated November 12, its fleet had shrunk to about 12 aircraft, with only nine operational, and its domestic market share fell from 3.9% in January to 0.6% in September. Passenger traffic dropped from nearly 592,000 domestic travellers in January to approximately 73,000 in September.S1S2
Data from the Directorate General of Civil Aviation showed SpiceJet cancelled 20.29% of scheduled flights in September, with on-time performance at major airports at 16.6%. Regulatory filings further showed that Rs 63.03 crore owed to small businesses remained unpaid beyond the prescribed 45-day period during April to September 2026. SpiceJet has also not announced its quarterly financial results since reporting its December-quarter earnings in February, and its shares closed at Rs 8.26 on the BSE on Thursday, hitting the 5 per cent upper circuit. The airline continues to face pressure to address its outstanding liabilities and stabilise operations.S1S2
