Kingfisher Airlines net loss at 1,027 crore

Kingfisher Airlines net loss at 1,027 crore

Even as the private sector airline promoted by Vijay Mallya did report net loss for the year but it had declined sizeably as result of “the improvement in operating performance was a result of the debt recast which was completed in December 2010,” the company said in a filing with the bourses.

Notwithstanding the loss, the airline posted a 25 per cent growth in its total income during the period under review to Rs 6,360 crore as against Rs 5,090 crore in the previous fiscal.

It reported a profit of Rs 140 crore in its earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2010-11, from a loss of Rs 690 crore in 2009-10. “Several cost reduction initiatives and growing maturity of international routes were the major contributors to the improvement,” the statement said.

The airline said that despite a rise of 15 per cent in the jet fuel cost, the EBITDA cost per available seat per kilometre (CASK) was reduced by 2.4 percent, thereby enabling the company's savings to rise.

“Excluding the impact of fuel, EBITDA CASK reduced by 10.1%. Kingfisher, during the year, implemented initiatives that lowered sales and distribution cost and overhead expenses,” the statement added.

Segment wise, the airlines' improved performance was led by its domestic operations, which reported an increase in profit of 131.31 per cent and stood at Rs 776 crore, compared to Rs 335.48 crore in the previous fiscal, while the international operations still remain in red but improved as losses were reduced from Rs 340.08 crore in 2009-10 to Rs 78.10 crore in the period under review.

The airline said the outlook for the Indian aviation segment was strong and that it expects the momentum to continue.