The Telegraph
Friday , June 1 , 2012
Since 1st March, 1999
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Kingfisher loss mounts

New Delhi, May 31: Kingfisher Airlines has suffered its worst quarterly loss at Rs 1,151.52 crore during the January-March period of 2011-12. The losses have more than tripled from Rs 355.54 crore in the year-ago period.

The fourth-quarter losses contributed to almost 50 per cent of the Vijay Mallya-owned airline’s losses for the fiscal ended March, which stood at Rs 2,328 crore (Rs 1,027.4 crore).

“The company has a focused fleet re-induction plan and hopes to be back to full-scale operations in the next 12 months backed by a recapitalisation plan that the company is actively pursuing and confident of achieving,” Kingfisher said.

The Kingfisher scrip fell as much as 8 per cent to a new low in morning trade.

The shares have plummeted over 73 per cent from its all-time high of Rs 44.30 on June 8, 2011.

The airline has never made a profit since its inception in May 2005. “Operational cost savings were offset by a steep hike in fuel prices and sharp depreciation of the rupee, which negatively impacted over 70 per cent of the cost base,” Kingfisher said in a statement.

During the quarter, income from operations stood at Rs 741.28 crore against Rs 1,626.65 crore during the same period of the previous fiscal.

The airline has been facing a rough weather for about a year, burdened by a debt of about Rs 7,057.08 crore.