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| KFA narrows loss by 21% |
| BS Reporter / Bangalore Jul 23, 2010, 01:25 IST |
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Kingfisher Airlines (KFA), owned by Vijay Mallya’s UB Group, has narrowed its loss by 21 per cent to Rs 187.34 crore, from Rs 198 crore in the year-ago quarter.
The airline attributed the improved performance to an increase in loads, yields and several cost cutting initiatives. Kingfisher saw a 12 percentage points increase in load factors to 81 per cent from 69 per cent and a five per cent improvement in yields over the same quarter last year.
Total revenue rose 28 per cent to Rs 1,640.57 crore, from Rs 1272.64 crore in the previous corresponding quarter.
The company achieved an operating profit of Rs 127 crore, compared to an operating loss of Rs 72 crore last year, despite taking a hit of Rs 35 crore due to forced grounding of aircraft.
 While earnings before interest, tax, depreciation and amortisation (Ebitda) profit for domestic operation stood at Rs 177 crore, international operation posted a loss of around Rs 51 crore, an improvement of around Rs 96 crore over the corresponding period last year.
UB promoters plan to infuse Rs 350 cr into KFA
UB Group promoters through their primary investment vehicle — UB Holdings — is closing in on an option to invest Rs 350 crore in Kingfisher Airlines Ltd by the end of the current quarter or early next. In addition, the group plans to convert Rs 395 crore worth of unsecured loans and preference capital into equity.
After this infusion, Kingfisher Airlines may raise close to Rs 1,000 crore through global depository receipts, most probably listing them on the Luxembourg Exchange. Citibank, Morgan Stanley, CLSA and UBS have been appointed as the bankers and preliminary road shows have been conducted.
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