Kingfisher Airlines loss surges to Rs 753.55 cr

Kingfisher Airlines losses have mounted to Rs 753.55 crore for the second quarter this fiscal, taking the accumulated losses to Rs 9,000 crore.

For the same period last fiscal, net loss was Rs 468.66 crore.

In a statement, the airline said losses have increased because of high finance costs, re-delivery of aircraft and higher costs because of the grounding of its fleet. The airline’s licence was suspended on October 20.

Revenues

The Vijay Mallya-owned airline’s revenues was a mere Rs 200 crore compared with Rs 1,553 crore during the same period previous fiscal. The statement said the airline has been in a holding pattern operating a limited schedule since March 2012. It said its operating loss was Rs 220 crore. Its net losses was higher because of finance cost of Rs 401 crore, a one-time cost of Rs 448 crore due to re-delivery of aircraft and restructuring/idle costs and taxes.

The statement also said the airline is preparing a comprehensive plan for re-start of operations which will be shared with the DGCA and bankers.

The airline is in discussion with various stakeholders to ensure that there are no future disruptions. Kingfisher Airlines expects to resume operations in the near future,” it said.

Revival chances poor

An airline analyst said with mounting losses, the chances of a revival have receded further. The airline may lose its licence if it is not renewed before December 31.

This week, its largest lender, State Bank of India, said the airline should infuse at least $1 billion by November 30 for its revival.

The airline’s stock price rose less than a per cent to close at Rs 12.89 at the close of Thursday’s trading.

giriprakash.k@thehindu.co.in