SME Times News Bureau | 16 Feb, 2012
High fuel costs and falling revenue resulted in Kingfisher Airlines' losses in the third quarter of the current fiscal mounting to Rs.444 crore from a net loss of Rs.254 crore suffered in the like quarter of 2010-11.
The company told the Bombay Stock Exchange (BSE) in a regulatory filing that its total income declined by five percent at Rs.1,547 crore in the period under review from Rs.1,625 crore in the quarter ended Dec 31, 2010.
Net sales or income from operations fell by 19 percent in the quarter ended Dec 31, 2011 at Rs.1,342 crore from Rs.1,659 crore in the like period of previous fiscal.
However, other income or non-operating revenues stood at Rs.205 crore from a negative 34 crore.
The company's fuel expenditure, which accounts for 50 percent of the operating cost of any airline, grew by 37 percent in the period under review at Rs.739 crore from Rs. 540 crore in the third quarter of 2010-11.
Segment-wise, total domestic operating revenues fell by three percent at Rs.1,184 crore from Rs.1,227 crore in the quarter ended Dec 31, 2010.
Total international operating revenues declined by nine percent at Rs.363 crore from 398 crore in the previous corresponding quarter in 2010-11.
According to the company, the aviation industry recorded a 12 percent growth in domestic market demand in third quarter of 2011-12 over the same quarter last fiscal.
"However capacity addition by the industry outstripped demand with 17 percent capacity being added as compared to the same quarter last year," the company said in a statement.
