Grounded Kingfisher Airlines posts Rs 716-cr loss in Q2

The carrier has not flown since October last year for want of cash

UB Group's Kingfisher Airlines, which has remained grounded for over a year, has reported another quarterly loss and no income from operations in the quarter ended September.

The airline’s net loss for the quarter narrowed by 5 per cent to Rs 715.55 crore for the second quarter from Rs 753.55 crore in the corresponding period last year. The airline had reported a revenue of Rs 200 crore in the same period last year when it was operational.

Expenses for the quarter dropped 80 per cent to Rs 130 crore in the quarter from the same time last year when the airline was in service. The company also counted Rs 50 crore in employee cost, down by 43 per cent from Rs 89 crore in the same period last year.

The debt-laden airline’s long term liabilities increased 7 per cent to about Rs 7400 crore as of Sept 30 from Rs 6918 crore at the end of March 31, this year. The company has said it will approach its lenders for a debt restructuring at an appropriate time.

The once No. 2 airline, headed by the flamboyant liquor baron Vijay Mallya, has not flown since October last year for want of cash. Bids to revive the airline has not gone far.

Meanwhile, the company reiterated on Friday that it was exploring various options to recapitalise and resume operations and it claimed that talks were on with potential investors.

It may be recalled that chairman Vijay Mallya had on September 24 last said that it was in talks with a foreign investor for a potential stake sale. But, despite numerous such announcements in the past, nothing has materialised so far.

The company’s stock dropped 1 per cent to Rs 5.64 apiece Friday on the Bombay Stock Exchange.