Kingfisher Airlines posted a second-quarter net loss of 4.69 billion rupees ($94 million), compared with a net loss of 2.31 billion rupees a year earlier. The airline blamed a doubling of fuel costs for wiping out any revenue gains. Jet fuel expenses jumped 70% from a year earlier to 8.17 billion rupees, while other operating expenses increased 17% to 6.51 billion rupees while staff costs rose 6.4% to 1.83 billion rupees. Aircraft lease rentals, however, fell 1.2% to 2.49 billion rupees.
The airline admitted that the company has “incurred substantial losses and its net worth has been eroded" and said that it was implementing steps to improve its financial health, such as fleet rationalization, a debt recast plan and requesting further credit facilities from banks.
Vijay Mallya, chairman of Kingfisher Airlines, denied he had asked for any bailout from government. “We have not asked the government to dip into the taxpayers' money. We have never done it, we will never do it."
He added that the airline’s banks had not told him formally to infuse capital nor sought loan restructuring. "We have not asked for a concession. We have not asked for a hair-cut. Our demands with the banks are mainly two-folds. One is to meet short-term capital needs which have gone up and concession on interest," Mallya said.