Wednesday, August 5, 2009

Kingfisher Results- Posts Rs.1,608 crore loss

Private carrier Kingfisher Airlines has reported a net loss of Rs.1,608.09 crore ($338.5 million) for 2008-09, but said it has plans to raise Rs.500 crore from the equity market.

The airline's expenses on employees cost stood at Rs.823.85 crore last fiscal, while expenses on aviation fuel and aircraft lease rental were respectively at Rs.2,602 crore and Rs.1,185.13 crore, Kingfisher said in a regulatory statement Wednesday.

The carrier's performance for the first quarter of the current fiscal was also dismal with losses touching Rs.242.71 crore.

The airline industry in India is going through a tough time due to the economic slowdown.

The private carriers owe nearly Rs.2,500 crore towards fuel to oil companies and have suffered cumulative losses of Rs.10,000 crore last fiscal.

Last week, leading private carriers, including Kingfisher, asked for a government bailout and threatened to suspend operations Aug 18 if the authorities fail to act.

However, later they called off the move and said they would enter into talks with the government to find a sustainable solution to the crisis the aviation sector faced.

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