Private carrier Kingfisher Airlines has reduced its September quarter losses by 45 per cent to Rs 231 crore as against a loss of Rs 418.77 crore in the same quarter a year ago. The airline saw a 24 per cent improvement in operating revenues, driven by a growth in aviation demand, focus on improving network profitability, and various cost reduction initiatives.
Sales have grown 24 per cent to Rs 1,382.72 crore when compared with Rs 1,112.70 crore. Meanwhile, shares of the company gained 2.06 per cent to close the day at Rs 81.65 on the Bombay Stock Exchange (BSE) on Monday.
Domestic revenues stood at Rs 1,038 crore compared with Rs 989 crore in Q2 FY10. This was a 5 per cent increase in revenue despite 18 per cent reduction in capacity (seats offered). International revenues were at Rs 345 crore compared with Rs 124 crore in Q2 FY10.
“This performance was despite 11 per cent reduction in the number of departures. The overall EBITDA margin for the quarter improved to a positive 4 per cent from the negative 24 per cent reported in the same quarter last year. These results have been delivered despite an estimated loss of over Rs 73 crore due to unplanned grounding of aircraft. Adjusted for this loss, the EBITDA margin would be 8 per cent for the quarter,” said the airline in a filing to the BSE.
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