Kingfisher Airlines has reported a net loss of Rs 469 crore for the September quarter, up 103% Year-on-Year mainly on high fuel cost and a weak rupee. However, sales of the company rose 10% to Rs 1528 crore.
The airline in a statement said that its fuel cost for the quarter rose 70% to Rs 817 crore, hurting its operational efficiency. Meanwhile, shares of the company were marginally up at Rs 21.50 at 9:30 hours
The airline in a statement said its net worth has eroded due to high interest cost and fierce competition leading to lowering of fares. However, the company has done away with its low cost operations called Kingfisher Red and has also undertaken a financial re-structuring exercise along with re-configuring its aircraft to accommodate more business class seats to improve yields per passenger.
The cash-strapped carrier with a debt of Rs 6,200 crore, is the worst hit amongst its competitors due to its inability to pay fuel bills and operate flights due to unavailability of funds.
The Vijay Mallya led airline has never posted profits since inception six years ago and is under-going a major financial re-structuring programme with the support of a consortium of banks led by SBI.
Source: www.moneycontrol.com
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