Kingfisher posts Q2 net loss of 4.19bn rupees

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India's Kingfisher Airlines has narrowed its losses in its second fiscal quarter due to its cost control measures.

In the three months ending 30 September, the airline had a net loss of 4.19 billion rupees ($89 million) compared to a net loss of 4.83 billion rupees in the corresponding period a year before.

In terms of expenses, aircraft lease costs remained virtually unchanged at 2.8 billion rupees but employee costs were 18% lower at 1.7 billion rupees and aircraft fuel costs were 44% lower at 4.6 billion rupees.

"Kingfisher restructured its operations and has continued to maintain stringent cost control," says the airline.

"The [financial] performance is noteworthy in the backdrop of intense competition, a lean monsoon traffic season" and the fact that, "technical issues led to the grounding of aircraft causing revenue loss."

Income from operations fell 14% to 11.4 billion rupees from 13.2 billion rupees, it says.

For the half-yearly period, the airline had a net loss of 6.56 billion rupees compared to a net loss of 6.41 billion rupees in the corresponding period.

In its outlook, Kingfisher says that it expects stronger yields and passenger numbers in the third quarter due to the peak season.

It adds that it will continue to take a pragmatic approach to international expansion. Kingfisher cites as an example its move to suspend Bangalore-London and Bangalore-Colombo services, but launch Mumbai-Hong Kong and Mumbai-Singapore services.