Kingfisher worst-performing airline in December quarter

Along expected lines, all the three listed airlines have posted losses in the recent December quarter, the fourth consecutive quarter in the red. High fuel cost (exacerbated by a weak rupee), and inability to raise fares to commensurate levels have again been the main culprits.
Of the lot, Kingfisher Airlines posted the highest loss (Rs 444 crore) compared with the loss of Rs 101 crore and Rs 39 crore reported by Jet Airways and SpiceJet respectively. Also, compared to the September 2011 quarter, while Jet and SpiceJet pared their December quarter losses significantly (between 84 and 86 per cent), Kingfisher managed only a 5 per cent reduction in losses.
Among other factors, Kingfisher's poor show resulted from the dip in its sales (down around 12 per cent on a sequential quarter basis) due to the airline curtailing operations during the December quarter. This has resulted in an increase in the airline's expense ratios.
Although Kingfisher reduced its employee expenses and fuel cost, these costs remained higher as a proportion of sales.
16/02/12 Anand Kalyana Raman/Business Line

To Read the News in full at Source, Click the Headline

Categories: Kingfisher Feb 2012