New Delhi: Cash deficient Kingfisher Airlines' net loss at the end of first quarter reached to 147 percent (INR 650.8 crore) this year. According to the revelations made by company on Saturday, losses were INR 263.5 crore last year.
Among the three listed airlines, which include Jet Airways, Spicejet and Kingfisher, Vijay Mallya's career is the only one to suffer losses in Q1. The two others have registered surprise profits after being in red for last five quarters.
The airlines in a statement to justify this fall said, "Though there have been reduction in operating expenses, the impact of high fuel cost, high interest rate, fall in rupee and extraordinary expenses on account of return of aircraft to the lessors and the cost associated with grounded planes have resulted in a net loss of INR 651 crore during the reporting quarter."
Spicejet reported INR 56 crore profit in June quarter, whereas Jet Airways registered INR 35.4 crore profit in the same quarter. However, Kingfisher dropped down to INR 301.38 crore from INR 1,907 crore in an year's time.
The company is returning its leased aircrafts and reducing operations as a strategy to survive losses. The airlines' other profits tripled to INR 92.69 crore from INR 31.64 crore but the company hasn't disclosed the reasons behind this shoot up. During the review period, the finance cost has increased to INR 383.34 crore from INR 305.80 crore and the salary bills have declined to INR 58.88 crore to INR 173.86 crore in comparison to last year.
The promoters infused Rs 750 crore fresh equity into the airline during the quarter, which saw its paid—up equity capital nearly doubling to Rs 808.72 crore from Rs 497.77 crore.