Kingfisher Airlines Posts Wider Loss on India Fuel Costs
20.05.12
(Updates with closing share price in fifth paragraph)
Feb. 16 (Bloomberg) -- Kingfisher Airlines Ltd., the Indian carrier controlled by billionaire Vijay Mallya, posted a wider third-quarter loss as fuel costs surged and the company cut flights amid a cash shortage.
The net loss was 4.44 billion rupees ($89 million) in the three months ended Dec. 31, compared with 2.54 billion rupees a year earlier, Bangalore-based Kingfisher said in a statement dated yesterday. Operating revenue fell 19 percent to 13.4 billion rupees, the airline said.
Kingfisher joins Jet Airways (India) Ltd. and SpiceJet Ltd. in extending losses as they fail to turn rising travel demand into profits because of fuel expenses and a price war. India may soon allow foreign airlines to buy stakes in local carriers as they struggle for financing to expand in a market where domestic traffic is forecast to surge fourfold by 2020.
“Mallya’s losing money hand over fist,” said Arun Kejriwal, director at Kejriwal Research & Investment Services Pvt. in Mumbai. “The situation is not going to improve quickly,” as fuel prices remain high.
Source: BusinessWeek