Wednesday, July 29, 2009

Kingfisher Airlines reports losses


India's Kingfisher has posted a net loss of 16.09 billion rupees ($334.9 million) for the year ending 31 March on net sales of 52.7 billion rupees. Kingfisher did not provide a comparison to the figures from a year. The last fiscal year was only nine months long as that took into account the airline's integration with low-cost carrier Deccan, and the separation of the latter's charter business into a separate company. It also wanted to bring its accounting year in line with that of other firms in the UB Group, its parent company. For those nine months in the previous fiscal year that ended on 31 March 2008, the airline posted a net loss of 1.88 billion rupees.

The losses come amid a turbulent time for the Indian airline industry, with the carriers reeling from falling demand and high costs. Kingfisher said earlier in July that it was seeking board approval to issue shares worth 50 billion Indian rupees, and secured shareholder approval to borrow up to 125 billion Indian rupees.The cash could allow the company to shore up its balance sheet and navigate its way out of the rough times, says a spokeswoman.

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