SpiceJet cancels Dubai flights amid dispute over unpaid airport fees, according to reports

Four SpiceJet flights from Dubai to India were cancelled on 12 November after airport check-in services were reportedly suspended over outstanding dues of 14 million dirhams (about $3.8 million).

The cancellations affected services to Amritsar, Jaipur, Mumbai and Delhi. Two other flights, bound for Ahmedabad and Delhi, were allowed to operate, according to media reports.

The Week reported on Friday that the Indian low-cost carrier was working with the relevant authorities to resolve the payment dispute.

SpiceJet acknowledged the issue in a statement quoted by The Week.

“We are in the process of resolving the matter with the concerned authorities. We have adequate bank guarantee cover in place and are working to ensure that the issue is sorted out at the earliest,” the airline said.

The statement did not specify when normal operations would resume or explain why the outstanding payments had led to the suspension of check-in services.

The disruption extended into Friday, with The New Indian Express reporting that no SpiceJet flights departed Dubai for India today. The newspaper said ground-handling company Dnata had not allocated check-in counters to the airline because of the payment dispute.

Internal correspondence first reported by Informist Media indicated that Dubai Airports had warned SpiceJet earlier in the week that its outstanding payments had reached 14 million dirhams, with no payment received since 13 October.

The correspondence also indicated that the Dubai Civil Aviation Authority had asked the airline to arrange alternative travel and accommodation for stranded passengers.

The four cancelled passenger flights were subsequently designated as ferry flights, allowing the aircraft to return without passengers.

Financial problems deepen

The Dubai disruption comes as SpiceJet faces mounting financial and operational difficulties, including a shrinking fleet, repeated cancellations and outstanding payments to suppliers and aircraft lessors.

According to The Week, the airline told the publication that it had 12 operational aircraft, although three were reportedly grounded. This represents a sharp reduction from a fleet of around 120 aircraft in 2020.

The airline’s domestic market share fell to just 0.6% in September, according to data from India’s Directorate General of Civil Aviation (DGCA). SpiceJet carried approximately 73,000 domestic passengers that month, compared with about 590,000 in January.

The carrier has also faced complaints from employees over delayed salaries, while former staff have alleged that their final settlements remain unpaid.

Its financial position remains difficult to assess because the airline has yet to publish its results for the final quarter and full year of the 2025–26 financial year, as well as the first two quarters of 2026–27.

The Bombay Stock Exchange stated that trading in SpiceJet shares will be suspended starting December 10, 2026, unless the airline files its overdue financial results for the March and June 2026 quarters by December 7, 2026.

SpiceJet seeks fresh capital

The airline is now considering another round of fundraising to support its operations.

In a stock exchange filing on Friday, SpiceJet said its board would meet on November 18 to consider raising fresh capital through equity shares, preference shares, debt securities or other permitted financial instruments.

The development comes as operational difficulties are affecting passengers beyond Dubai.

Delhi’s Indira Gandhi International Airport issued an advisory on Friday warning that some SpiceJet flights could be affected by operational challenges. Passengers were advised to contact the airline directly for updated flight information. The airport did not specify the number of services involved.