Kingfisher Airlines' Q2 losses doubles

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Kingfisher Airlines' Q2 losses doubles
Kingfisher Airlines: Quotes, News
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Kingfisher Airlines, the company which is in the midst of trouble on Tuesday posted losses in its Q2 financial results. The losses of the company have doubled during the quarter year-on-year (y-oy) on account of higher fuel costs and operating costs.

The airline's losses stood at Rs 469 crore for the second quarter ended September 30 against a loss of Rs 231 crore reported a year ago.

The company's net revenue rose by 11% during the quarter at Rs 1,530 crore against Rs 1,380 crore reported a year ago. But, higher fuel and operating costs eroded all the grosses of the company.

It's fuel expenses grew by 70% to Rs 817 crore during the quarter.

Kingfisher, which is India's second largest airline is in a dark cloud of debt and has never reported profit since it's launch. It's debt figure has mounted above Rs 7,000 crore.

The airline has been asked by its biggest lender, State Bank of India (SBI) to raise Rs 800-1000 crore in equity, the board members of the airlines met on Monday to discuss about the possible solution to reduce the debt burden.

The airline may consider to restructure its debt by selling some of its assets and converting its loans into equities to reduce the debt.

Banks which has the highest exposure to the debt-ridden airline will take the control of the cashflows of the company to protect their influence.

Kingfisher Airlines has became one of the main victims among the ones who rolled under the spiral of higher crude prices.

Read more about: kingfisher airline, results, sbi, revenues, fuel
Story first published: Tuesday, November 15, 2011, 11:36 [IST]
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