Net loss in the three months to March widened by 3.2 times to Rs 1,151 crore, from Rs 355 crore in the year-ago period. The airline, which drastically cut its fleet size during the past eight months due to stifling debt, reported a 54 per cent drop in top line at Rs 741 crore.
The UB Group-owned airline, creaking under a debt of around Rs 8,000 crore compounded by its negative networth, said the Indian aviation industry was confronted with an unprecedented, tough operating environment, intensified by consistently high fuel prices and a depreciating rupee.
“Fuel prices have increased by over 40 per cent over last year, compounded by the weakened rupee. The industry’s demand growth in the domestic market at 13 per cent in 2011-12 over last year has been overshadowed by 17 per cent growth in industry capacity, leading to a pressure on the yields and the load factor for the industry,” a company statement said. The effect of restructuring of loans showed some positive movement, as its interest payout was down by 17 per cent at Rs 289 crore during the quarter.