Kingfisher Airlines cuts losses by 44 per cent in Q2
16 November 2010
Kingfisher Airlines, promoted by liquor baron Vijay Mallya, has reported a 44 per cent drop in net loss for the June-September quarter to Rs230 crore, compared with a net loss of Rs418 crore in the year-ago period.
The debt-laden airline, which has been consistently making losses for the past few quarters, posted a 29 per cent rise in total revenues to Rs1,516 crore from Rs1,178 crore a year ago. It showed an operating profit of Rs175 crore for the quarter ended 30 September against a year-ago operating loss of Rs65 crore.
In the second quarter - usually considered a lean season but in which other airline companies such as Jet Airways and SpiceJet posted profits - Kingfisher attributed its loss to technical glitches. The airline, which had to ground 12 Airbus A320 aircraft due to engine trouble, suffered a loss of Rs73 crore owing to this. ''Approximately 30 per cent of our Airbus A320s were on the ground due to engine trouble during the period,'' the company said in a statement.
The airline, India's second biggest by passengers, expects to fly six of the grounded aircraft by November-end. Analysts are expecting the company to do better in the remaining quarters of the current fiscal, with the airliner witnessing increased booking and the peak season approaching.
With the passenger traffic rising by 13 per cent during the June-September period, analysts are now expecting a resurgence of domestic air travel.
Kingfisher Airlines earned an average Rs4.56 lakh per flight during the quarter, 38.85 per cent higher than the year earlier.