Aviation industry: Kingfisher’s first quarter losses double

MUMBAI: Cash-strapped Kingfisher Airlines on Saturday said quarterly losses more than doubled from a year earlier, fuelling fresh doubts about the future of the private Indian carrier. Kingfisher’s net loss widened to Indian rupees (INR) 6.60 billion ($120 million) in the financial quarter to June from a loss of INR2.63 billion in the same period last year, as revenues slumped due to reduced operations. “The company has suffered substantial losses and its net worth has been eroded,” the airline said in its earnings statement. But Kingfisher -- which has never posted a profit since its launch in 2005 -- said it still hoped to “get recapitalised” and added it was “in discussion with several strategic and financial investors to bring in fresh capital”. The airline blamed the latest loss on “high fuel costs, high interest rates, depreciation of the rupee and expenses due to the return of aircraft to lessors”.

Published in The Express Tribune, August 12^th, 2012.