Kingfisher Airlines Q1 net loss widens to Rs 1,157 crore

MUMBAI: Kingfisher Airlines on Wednesday said its net loss for the April to June quarter widened as the company continued to incur costs while its operations have been grounded. The Vijay Mallya-controlled carrier posted a net loss of Rs1,156.91 crore for the April-June quarter compared to a net loss of Rs650.78 crore a year earlier. Kingfisher said its accumulated losses as of March 31 were Rs 16,023 crore and its net worth a negativeRs12,920 crore.

The company didn’t have any sales for the quarter as its planes remained grounded. Kingfisher cancelled all its flights indefinitely since October 1, when its employees went on strike against unpaid salaries. Subsequently, its flying licence was suspended by India’s aviation regulator, the Director General of Civil Aviation.

Earlier this year, Kingfisher’s lenders gave it a notice to recover all their loans as it had defaulted on them. The banks have since March sold off shares pledged by group companies and taken possession of its office in suburban Mumbai. Kingfisher said banks have taken possession of over 26 lakh pledged shares in United Spirits and 1 crore shares in Mangalore Chemicals and Fertilizers.

In its results announcement, Kingfisher said it has challenged the banks’ actions in court. “There is no point in tracking this airline anymore. It will go into gradual liquidation,” said an analyst at a top consultant, insisting anonymity.

During the quarter, the airline spent Rs323.5 crore on finance costs during the quarter, down 16% on year. Lease rental costs were 47% lesser at Rs105.5 crore. Kingfisher’s non-operating income fell almost a 100% to Rs 46 lakh.