Home »  Money

Kingfisher Q2 loss widens to Rs 754 crore; says revival plan soon

Thursday, 8 November 2012 - 11:16am IST Updated: Thursday, 8 November 2012 - 2:17pm IST | Place: Mumbai | Agency: PTI
The airline said it is working on a comprehensive plan to resume operations, even as its accumulated losses rose to nearly Rs9,000 crore as on September 30.

Debt-ridden Kingfisher Airlines on Thursday posted a net loss of Rs754 crore for July-September quarter, widening by 61% from Rs469 crore in year-ago period, making it the 23rd straight quarter of losses for the carrier.

The airline said it is working on a comprehensive plan to resume operations, even as its accumulated losses rose to nearly Rs9,000 crore as on September 30 due to huge restructuring costs, prior-period tax payments, costs related to its heavy debt burden of about Rs8,000 crore and disrupted operations.

Kingfisher Airlines, part of liquor baron Vijay Mallya-led UB Group, had last posted a quarterly profit in October-December period of 2006 (Rs9.6 crore), while it has never posted a profit on full-year basis.

The losses in the last quarter widened by 16% from Rs651 crore in the previous quarter ended June 30, 2012.

This is the second highest quarterly loss for the carrier after a loss of Rs1,152 crore in the fourth quarter of last fiscal ended March 31, 2012.

The carrier's revenue also plunged by about 87% to Rs200 crore during the second quarter of current fiscal, from Rs1,553 crore in the same period last year because of disruption in operations and eventual suspension of its licence by aviation regulator DGCA.

Although its expenses fell sharply across various heads, including for employees, the carrier suffered huge restructuring cost and tax expenses also rose sharply.

Kingfisher said it is in discussions with various stakeholders to ensure that there are no future disruptions and expects to resume operations in the near future.

"Kingfisher Airlines is preparing a comprehensive plan for re-start of operations which will be shared with the DGCA and bankers," the carrier said in a BSE filing.

The expectations of a revival plan helped its share price rise by about 3.4% to Rs13.26 at the BSE by early afternoon trade after a muted opening on Thursday morning.




Jump to comments