Kingfisher Airlines net declines 13% at Rs 418 cr

Vijay Mallya-controlled Kingfisher Airlines has reported a 13.4 per cent drop in its net loss at Rs 418.23 crore during the second quarter ended September 30, 2009 compared to a net loss of Rs 483.2 crore in the corresponding quarter last year. Its income from operations declined by 13.6 per cent to Rs 1,142.1 crore during the quarter compared to the same period a year ago.

At the EBIDTA level domestic operations showed an operating loss of Rs 178 crore in the current period as against a loss of Rs 465 crore in the corresponding period last year. However, on an overall basis, the company has incurred an EBIDTA loss of Rs 336 crore including losses and costs associated with the recent startup of new international routes.

Kingfisher continues to remain the market leader in the domestic industry with a singular market share of 23.3 per cent in September 2009. The airline has increased its guest count by 9 per cent inspite of a capacity reduction of 17 per cent in the domestic market.

Kingfisher has restructured its operations and has continued to maintain stringent cost control. This has helped the company show a positive EBITDAR of Rs 44 crore as against a loss of Rs 207 crore in the corresponding quarter in the previous financial year for its domestic operations.

Coming into the industry's peak quarter the company expects to show higher guest numbers and much stronger yields in the third quarter of this year.