SpiceJet, India’s low-cost carrier, has successfully cleared all pending employee provident fund (PF) dues amounting to INR 160.07 crore, spanning over two years.
SpiceJet’s financial turnaround strategy has been instrumental in its recent achievements.
SpiceJet Clearing Statutory Liabilities
In a statement released on Friday, SpiceJet announced that it has also cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues, following the recent INR 3,000 crore raised through a Qualified Institutional Placement (QIP).
The airline has been utilizing its internal cash flows since October 2024 to meet its statutory obligations, reflecting its improved financial health and operational discipline.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his satisfaction with the clearance of all pending employee PF dues.
Ajay stated, “This marks a new chapter in SpiceJet’s journey”.
He added, “By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees.”
Ajay also said, “With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth.”
Financial Health and Credit Rating
The airline’s sustained efforts toward financial stability and operational resilience have recently been recognized by Acuité Ratings & Research Limited, which upgraded SpiceJet’s credit rating by four notches.
This upgrade is a testament to the airline’s improved balance sheet and its ability to resolve multiple outstanding disputes with aircraft lessors and other creditors.
Since October 2024, the airline has been utilizing its internal cash flows to meet its statutory obligations, including PF and TDS payments.
This strategy has not only improved the airline’s financial health but also saved significantly on interest payments.
The airline’s shares rose 1.38% to close at INR 58.59 apiece on the Bombay Stock Exchange (BSE) following the announcement.
About SpiceJet
SpiceJet, known as India’s favourite airline, has made flying affordable for more Indians than ever before.
The airline operates a fleet of Boeing 737s and Q-400s and is one of the country’s largest regional players under the UDAN or Regional Connectivity Scheme.
Majority of the airline’s fleet offers SpiceMax, the most spacious economy-class seating in India.
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