Kingfisher Airlines posts Rs 577 cr loss on cost flap

Mumbai: Kingfisher Airlines has posted a net loss of Rs 577 crore in the financial year ended March 2007, the balance sheet of UB Holdings, which owns the airline, shows. The loss was on a revenue of Rs 1,553 crore earned during the year. This, incidentally, may well be the biggest loss posted by a major domestic airline recently.
Kingfisher’s more established rival, full-service carrier Jet Airways, had recorded a marginal profit of Rs 28 crore in the same period while government-owned Indian closed the year with a Rs 275-crore loss. Industry analysts estimate that domestic airlines have lost around Rs 2,000 crore in 2006-07.
Kingfisher, now in its third year of operation, hopes to break even in 2008-09. But analysts reckon that the going could get tougher, especially if the current cost pressures continue even as the Vijay Mallya-owned airline attempts to chart its international foray next year.
07/12/07 M Padmakshan/Economic Times

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Categories: Kingfisher Dec 2007