India's Kingfisher has fiscal Q3 loss of Rs4.13 billion

Singapore
Source:
This story is sourced from Pro
See more Pro news »

Kingfisher Airlines' third quarter fiscal loss has doubled due to high aircraft lease costs and fuel costs.

The Indian carrier says in a statement to the Bombay stock exchange it had a net loss of Rs4.13 billion ($84 million) for the three months ending 31 December compared to a Rs1.9 billion net loss for the corresponding period the year before.

This is despite the fact income from operations in the third fiscal quarter rose 155% year-on-year to Rs14.5 billion from Rs5.7 billion.

Total expenditure rose largely due to a 227% rise in aircraft lease costs to Rs3.6 billion from Rs1.1 billion, fuel costs rose 93% to Rs5.6 billion from Rs2.9 billion and "other operating expenses" rose 185% to Rs7.4 billion from Rs2.6 billion.

For the nine-month period the airline had net losses of Rs10.5 billion from Rs6.2 billion on the back of a 175% year-on-year increase in income from operations to Rs41.7 billion from Rs15.2 billion.

Kingfisher says in the statement that it increased revenue despite "a 15% reduction in capacity during the quarter" and it had to pay Rs300 million in lease rentals on aircraft it had parked.

The other big loss generators for the carrier were "initiation costs of international operations" totalling Rs1.74 billion and "the exchange rate impact of dollar denominated expenses" that all up cost it Rs600 million, it says.

Kingfisher's operations grew substantially in 2008 because it merged with Indian low-cost carrier Deccan and it also launched its first international operations including flights to London Heathrow.