The company had reported a net loss of Rs 419.97 crore during the corresponding quarter last fiscal.

Its income from operations registered an increase of 27.95 per cent during the quarter at Rs 1,658.69 crore as against Rs 1296.34 crore of the October-December quarter of 2009-10, the airline said in a filing to the Bombay Stock Exchange.

According to the filing, lesser payments on account of foreign exchange differential and exceptional items were the two main reasons, due to which the company was able to reduce its net loss during the quarter.

During the quarter, exceptional items outgo was Rs 19.19 crore, a decline of over 80 per cent as compared to Rs 100.74 crore it had paid in the October-December quarter of 2009-10.

The filing, however, did not mentioned the details of exceptional items.

Similarly, foreign exchange difference was Rs 50.91 crore for the company, a decline of 56.42 per cent vis-a-vis Rs 116.84 crore in corresponding quarter last year.

However, the interest outgo of the Vijay Mallya-promoted airline increased by 23.63 per cent to Rs 339.59 crore, while aviation fuel costs surged by about 21.50 per cent at Rs 540.14 crore.

For the nine months period, between April and December, 2010, Kingfisher's net loss has reduced by 37 per cent at Rs 671.85 crore as against a net loss of Rs 1076.32 crore it had reported for the corresponding period of 2009-10.

Shares of the company closed today at Rs 42.10 apiece on the Bombay Stock Exchange, up 4.60 per cent from previous close.