Stranded Passengers: SpiceJet Faces Financial Turbulence Amid Flight Cancellations

Hundreds of SpiceJet passengers found themselves stranded at Dubai airport following flight cancellations due to non-payment of dues by the airline. Operational issues were cited by SpiceJet, which later rebooked passengers and provided accommodations. The financially troubled airline strives to raise funds to mitigate cash flow issues.

Hundreds of SpiceJet passengers were left stranded at Dubai airport on Wednesday after flights were cancelled due to non-payment of dues to Dubai airport authorities, according to credible sources.

A spokesperson for SpiceJet confirmed on Thursday that a few flights from Dubai to India were cancelled on Wednesday for operational reasons but did not provide further details.

The source familiar with the situation stated that approximately 10 flights, destined for various Indian cities, were affected due to unpaid dues. The airline took immediate measures to rebook passengers on later flights and arranged hotel accommodations. The spokesperson assured that scheduled flights from Dubai are now operating as planned.

Ajay Singh-promoted SpiceJet has been facing financial difficulties, marked by delayed salaries, deferred vendor payments, and undeposited Employee Provident Fund Contributions since January 2022. Despite reporting a standalone profit of Rs 119 crore in the January-March quarter, the airline registered significant losses in other quarters. Recently, SpiceJet's board approved a plan to raise Rs 3,000 crore through equity shares or other securities. Of their 59-plane fleet, 37 aircraft remain grounded due to various reasons.

(With inputs from agencies.)