Thaindian News

Mumbai, Aug 11 (IANS) Cash-strapped Kingfisher Airlines Saturday reported a net loss of Rs.650.78 crore for the quarter ended June 30, 2012 from a loss of Rs.1,151 crore in the corresponding period of 2011-12.

The company said in a statement that the impact of high fuel cost, high interest rate, expenses on account of return of aircraft to the lessors were the reasons for the staggering loss for the quarter under review.

The company’s scrip had plummetted by 11 percent Friday as the share price closed at Rs.7.40 as investors were apprehensive about the quantum of quarterly losses the company was about to report on Saturday.

The company’s income in the first quarter stood at Rs.301.38 crore, down 60.49 percent from Rs.762.82 crore it earned in the like period of 2011-12.

Fuel consumed in the quarter under review cost the airline Rs.232.78 crore, down 57.29 percent from Rs.545.12 crore. The fuel costs came down as the company has been operating lesser flights than in the corresponding quarter of last fiscal.

Aircraft rentals stood at Rs.57.02 crore, down 43.04 percent from Rs.100.11 crore in rent it paid in the first quarter of 2011-12. The company said that its finance lease obligation outstanding with respect to certain aircraft as of June 30, 2012 stood at Rs.234.62 crore

Employee pay outs were also lower at Rs.58.88 crore, down 57 percent from Rs.136.96 crore worth of compensation the company paid its employees in the corresponding quarter of last fiscal.

However, other operating income increased by 113.30 percent at Rs.92.68 crore from Rs.43.45 crore it earned in the like period of the last fiscal.

The company further said that the United Breweries (UB) Group provided cash support worth over Rs.750 crore to the airline to meet its cash flow requirements.

The airline said that it will get recapitalised and get back on the path of sustained profitability, though it did not provide any time line for the same.

“The airline is in discussions with several strategic and financial investors to bring in fresh capital,” the airline said in a statement.

The airline’s troubles grew further on Aug 8 as it cancelled two dozen flights from the national capital and Mumbai due to a strike by pilots over non-payment of salaries.

Last month, the airline faced a similar situation when it cancelled 40 flights across its network, stranding thousands of passengers. The cash-strapped airline had also suspended operations to several cities and asked its staff to stay at home till it managed fresh funding.

The airline is going through a financial crisis and has seen an exodus of pilots and engineers. The airlines’ June market share stood at 4.2 percent.

In June the airline recorded the highest number of cancellations among all domestic carriers, as it cancelled 3.7 percent of all its domestic flights.