Hit by a 44 per cent increase in aircraft fuel costs, the Bangalore-based private airline Kingfisher Airlines' losses increased over 40 per cent to touch Rs 263.54 crore during the first quarter of this fiscal, compared with losses of Rs 187.35 crore recorded during the corresponding quarter of last fiscal.

Aircraft fuel costs stood at Rs 845.13 crore (Rs 585.57 crore).

Income

However, income from services grew 15 per cent to Rs 1,881.64 crore (Rs 1640.58 crore), while other income grew to Rs 293.65 crore (Rs 159.19 crore).

The airline's growth in income from services was driven by a 33 per cent increase in revenues from international services and 10 per cent from domestic services.

While revenues from international services stood at Rs 422.33 crore (Rs 316.71 crore), those from domestic services were at Rs 1,459.31 crore (Rs 1,323.97 crore).

expenses

On the expenses side, beside mounting aircraft fuel costs, the company also reported an increase in other operating expenses at Rs 640.28 crore (567.81 crore).

The airline in its announcement to Bombay Stock Exchange said that the company had adopted the exposure draft on accounting standard – 10 (revised) ‘Tangible fixed assets' which allows costs on major repairs and maintenance incurred to be amortised over the incremental life of the asset. The company has extended the same treatment to costs incurred on major repairs and maintenance for engines pertaining to aircrafts acquired on operating lease.

Had the company not adopted this method, the loss before tax for the quarter and the loss after tax would have been higher by Rs 38.82 crore and Rs 26.23 crore respectively, it added. Its losses before tax stood at Rs 390.12 crore (Rs 263.87 crore).

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