Kingfisher loses USD128 million in third quarter to 31-Dec-08
05-Feb-2009 |
Airline Code [KFR]
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Kingfisher Airlines reported a USD128.5 million loss in the three months ended 31-Dec-08, on a 7% increase in revenue to USD296 million. Third quarter losses were attributed to USD35.7 million in costs related to its international business launch, a USD21.1 million increase in interest expenses and an exchange rate impact of dollar denominated expenses of approximately USD12.3 million.
The carrier has now generated losses of over USD300 million for the first nine months of 2008/09, and the final quarter is shaping as a deeply loss making period for all players in the Indian aviation industry.
The financial pressures on Kingfisher remain intense. The carrier (along with Jet Airways) was given until 04-Feb-09 to clear all outstanding jet fuel payments owed to Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum, while a Karnataka High Court rejected a petition by Kingfisher to restrain GECAS from deregistering and repossesses its fourth A320 from the airline. Three A320s were previously surrendered after Kingfisher defaulted on lease payments.
It was also revealed in Jan-09 that Dr Mallya had pledged an 81% stake in whisky manufacturer, United Spirits, owned by his holding company, United Breweries Holdings, as a guarantee to lenders in the airline, such as IDFC, IL&FS, Citigroup and ICICI Bank. Kingfisher Airlines had used the corporate guarantee to raise money for its expansion plans and to acquire Deccan.
(c) Centre for Asia Pacific Aviation. Date posted: 05-Feb-09 These are extracts from the latest edition of The Monthly Essential India
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Kingfisher loses USD128 million in third quarter to 31-Dec-08 
