Kingfisher Flies Deeper into Losses at Rs 651 Cr in Q1
Struggling Kingfisher Airlines today said its
net loss widened by a whopping 147 per cent to Rs 650.8 crore in the
quarter ended June, from Rs 263.5 crore in the year-ago period.
This was due to higher interest costs and cost on grounded planes
even as curtailed operations helped the airlines trim operational
Among the three listed airlines, liquor baron Vijay Mallya's carrier
is the only one to have reported losses in the first quarter.
The other two--Jet Airways and Spicejet-- registered surprise profits
after being in the red for five consecutive quarters, driven by better
operating margins on the back of lower oil prices and higher seat
"Though there have been reduction in operating expenses, the impact
of high fuel cost, high interest rate, rupee fall and extra-ordinary
expenses on account of return of aircraft to the lessors and the cost
associated with grounded planes have resulted in a net loss of Rs 651
crore during the reporting quarter," the airline said in an exchange
In the last fortnight, Spicejet reported a Rs 56 crore surprise
profit in the June quarter on the back of improved capacity,
cost-cutting and better realisation, while the largest carrier Jet Group
reported a Rs 35.4 crore profit in the same period.
Total income of Kingfisher during the reporting period fell nearly
five-fold to Rs 301.38 crore from Rs 1,907 crore during the year-ago
The carrier, launched in 2005, has substantially reduced its operations
as part of a revival strategy and also returned some of its leased
aircraft during the period.
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