Kingfisher posts 75% jump in net loss for Q3
16 Feb 2012
Kingfisher Airlines has reported a 75-per cent jump in its net loss to Rs444 crore for the December quarter from a year earlier amid high fuel costs, significant flight cuts and a weaker rupee, the company said in a statement today.
The airline, which discontinued operations on its low cost arm Kingfisher Red last year, also saw its revenues drop 5 per cent to Rs1547 crore year-on-year.
"A steep depreciation of the Indian rupee coupled with consistently high crude oil prices has led to a challenging quarter for the Indian aviation industry," the statement said.
The airline incurs around 50 per cent of its expenses in dollar terms and hence had a significant jump in its cash outgo as the rupee weakened by over 12 per cent against the dollar during the period.
Kingfisher, which has never made profits since its inception, has seen its share price plunge over 60 per cent in the past one year, bringing down its market value to Rs1,300 crore.
However, after the result announcement, its shares were up 2.24 per cent to Rs27.35 in morning trade on the Bombay Stock Exchange.
