Kingfisher’s Q3 loss mounts to Rs 444 cr

“Having regard to capital raising plans,group support,the request made by the company to its bankers for further credit facilities,planned reconfiguration of aircraft and other factors,these interim financial statements have been prepared on the basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities,” the company said. However,shares of the company rose by as much as 3 per cent intra-day before closing 0.75 per cent higher at Rs 26.95 on the BSE on Thursday.

Revenue in the third quarter fell 15.2 per cent to Rs 1,342 crore against Rs 1,583 crore in the same period of the last fiscal. Kingfisher’s fuel costs during the quarter rose by 37 per cent to Rs 738 crore from Rs 540 crore previously. Fuel costs accounted for 44 per cent of operating expenses during the quarter,the company said.

A slashing of routes to cut costs resulted in Kingfisher’s domestic market share slip to 12.1 per cent in December,the No 5 carrier. In July,it had a 19 per cent market share and was the second-largest carrier. Jet Airways and SpiceJet also posted quarterly losses of Rs 101 crore and Rs 240 crore respectively last month on higher fuel costs. According to Kingfisher Airlines,capacity addition by the industry outstripped demand with 17 per cent capacity being added compared to the same quarter last year.