Kingfisher losses double | india | Hindustan Times
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Kingfisher losses double

india Updated: Nov 16, 2011 01:46 IST
HT Correspondent

A defiant Kingfisher Airlines chairman Vijay Mallya sought to assuage worries about the future of his airline. Kingfisher Airlines on Tuesday reported a 103% year-on-year rise in net loss at Rs 469 crore for the quarter ended September against Rs 231 crore last year, mainly due to high fuel costs and sales tax levied by state governments.

The airlines' total revenue rose 8% at Rs 1,630 during the July-September quarter.

"The savings of interest and other costs were offset by a steep hike in fuel prices and the weakening of the Indian rupee, which negatively impacted 70% of the cost base," the company said in a statement.

High interest rates were also hurting business, said Mallya.

The company, which has a debt burden of Rs 7,700 crore, said it needs around Rs 800 crore in the current scenario.

"We require Rs 700-800 crore, which includes both fund and non-fund based. We have pursued every opportunity to raise capital," said Mallya.

State Bank of India leads the consortium of 13 banks that has lent to the airline.

The company had also curtailed about 40 flights last week, terming them unviable, but said it does not plan to cut down flights any further.

Kingfisher's stock has lost about 67% since the beginning of the year.