Virgin America 1Q loss but IPO still on; while ICICI sells Kingfisher debt and China cuts fuel

The Chinese government has cut domestic jet fuel prices by 9% to CNY 6,724 ($1,064) per ton and prices are now 12% down on last year.
ICICI Bank has managed to offload its US$99m (430 crore) exposure to Kingfisher. Well done to them and the best of luck to Srei Venture Capital who obviously see some assets in their sights.
Meanwhile, Virgin America posted a $76 million loss for the first quarter, bringing the total amount of losses since inception in 2007 to $530 million.
Virgin America's first-quarter revenue grew by 33% to $267 million. Its unit revenue, or the amount taken in for each passenger flown a mile, increased by 2.2% — growth that lagged behind the industry. But its 1% increase in unit costs was also lower than the most of the industry. Virgin America attributed $15 million of its first-quarter loss to fuel increases, and another $10 million to $15 million to its switch to a new reservations system, which miscalculated demand and sold too many seats at a discount, boosting the airline's load factor but dropping its average fare by 8% to $168.
Chief executive David Cush said he is sticking with previous forecasts that 2012 will be profitable—despite its first-quarter loss widening from $45 million a year ago.
Indeed the losses are due to the rapid expansion of the airline into San Francisco and beyond and one has to wonder if Virgin America will be caught out as the US market is weakening almost as fast as Virgin America is expanding – this is a problem to watch out for and will be a sticking point for that IPO next year unless the global economy starts to show some real signs of recovery – which, based on all facts to hand, it will not.
In fact the global economy looks more shot to bits than it ever did and a possible depression of some magnitude is still very much on the cards for us all, the policy of buying time to sort out the mess by adding debt is becoming a policy that will have no end.
Virgin America also announced its first code-share agreement, a limited pact with Virgin Australia Holdings. The Australian carrier will put its code on some Virgin America domestic flights though it will not reciprocate on its own trans-Pacific services, where it already has a marketing deal with Delta.