This Airline Reduced Its Staff By Nearly 2,000 In FY24; Check The Details Here

For non-permanent employees, the percentage of men earning above the minimum wage increased from 1 per cent to 8 per cent, while for women, it rose from 2 per cent to 16 per cent

SpiceJet, India's sixth-largest airline, downsised its workforce in FY24, impacting thousands of employees. As part of its financial restructuring strategy, the airline let go of nearly 2,000 employees, including permanent and temporary staff. Despite the staff reduction, the proportion of employees earning above the minimum wage has risen.

Permanent employees now earn 74 per cent more than the minimum wage, up from 61 per cent, while women’s earnings have increased significantly, from 37 per cent to 56 per cent, according to an ET Now report.

For non-permanent employees, the percentage of men earning above the minimum wage increased from 1 per cent to 8 per cent, while for women, it rose from 2 per cent to 16 per cent. However, a gender wage gap persists, with male employees still earning more than their female counterparts, states the report.

Meanwhile, SpiceJet reported a 9 per cent decline in staff salaries and benefits/expenses, which dropped to Rs 7,705.44 million in FY24, compared to Rs 8,438.71 million in FY23. This decrease was primarily due to a reduction in headcount. Ajay Singh, the Chairman and Managing Director, earned 211 times the median employee salary, receiving Rs 54 million in FY24, with Rs 18 million allocated against the permitted Rs 72 million.

The airline's total income fell by 14 per cent to Rs 84,969.69 million, while operating revenue decreased by 21 per cent to Rs 70,499.74 million, primarily due to reduced fleet utilisation. However, other income rose 38 per cent to Rs 14,469.45 million, driven by asset monetisation. Aircraft fuel costs were reduced by 37 per cent to Rs 29,825.62 million, and staff expenses fell by 9 per cent. Lease-rental charges surged by 70 per cent to Rs 6,381.98 million, primarily due to wet-leasing.

SpiceJet's standalone net loss narrowed to Rs 4,094.39 million in FY24, compared to Rs 15,030.15 million in the previous year, while EBITDA improved to Rs 7,714.71 million. The airline's fleet size decreased to 65 aircraft by the end of FY24, down from 76 in FY23. SpiceJet currently operates 60 planes, including six wet-leased aircraft, though some remain grounded due to unpaid dues.