Hit by a 37 per cent increase in fuel costs coupled with a steep depreciation in the rupee, Kingfisher Airlines turned out another disappointing performance with a 75 per cent rise in net loss to Rs 444 crore during the third quarter.

But for a ten-fold increase in ‘other income' to Rs 205 crore, the losses would have widened further. The total loss for the nine-month period for the fiscal now stands at Rs 1,167.48 crore, a statement from the company released late last night said. Operating revenues declined 19 per cent to Rs 1,342 crore.

Though the October-December quarter is generally considered the strongest during the year for the aviation sector, Kingfisher Airlines, along with Jet Airways and SpiceJet, which also posted losses for the quarter, has failed to capitalise on the 12 per cent increase in domestic demand, largely because of the stiff price wars and escalating fuel costs.

An aviation analyst said that following further losses, banks would be more wary of giving additional loans to the airline. “Normally, the third quarter is the strongest for any airline, and with increased losses in the third quarter, it is not a very encouraging scenario,” he told Business Line . In its investor presentation, the company said that its net worth has eroded. “Steep depreciation of the rupee coupled with consistently high crude oil prices has led to a challenging quarter for the Indian aviation industry,” the company said. The Kingfisher Airlines stock went up marginally to close the day at Rs 26.75 on Thursday.

In its international operations, the airlines posted a 9 per cent decline in passenger revenue and a 4 per cent drop in capacity. On the domestic sector, there was a 19 per cent decrease in passenger revenue and a 5 per cent reduction in capacity.

> anju@thehindu.co.in

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