Kingfisher Q1 net loss widens, to raise Rs500 cr

Kingfisher Q1 net loss widens, to raise Rs500 cr
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First Published: Wed, Jul 29 2009. 01 46 PM IST
Updated: Wed, Jul 29 2009. 01 46 PM IST
Mumbai: Kingfisher Airlines Ltd said on Wednesday its quarterly loss widened, hit by falling passenger demand due to the global slowdown, adding that it has appointed bankers to help it raise up to Rs5 billion.
Its net loss in April-June widened to Rs2.4 billion compared with a loss of Rs1.58 billion a year ago.
Income from operations fell to Rs13.13 billion against Rs13.98 billion a year ago as it cut back its capacity by 23% due to the adverse economic conditions, it added.
India’s airlines suffered a cumulative $2 billion of losses in 2008/09 on high operating costs and a fall in demand amid a global slowdown.
Kingfisher has reported a net loss of Rs16.09 billion for the year ended 31 March.
It has returned aircraft and also postponed deliveries, and has moved 70% of its network to single class low fare options, it said.
The airline also said it plans to raise Rs5 billion through a rights issue, a follow on public offering or a placement of depository receipts.
At 12:25pm, Kingfisher shares were down 0.77% at Rs51.35 in a weak Mumbai market.
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First Published: Wed, Jul 29 2009. 01 46 PM IST