Kingfisher losses mount as soaring costs take toll
KINGFISHER Airlines’ losses mounted in the third quarter, taking the total loss to $240m (£152m) this fiscal year, as the ailing Indian carrier was squeezed by high fuel costs, a weaker rupee and fierce competition.
Kingfisher, controlled by liquor baron Vijay Mallya, has become a byword for the debt-laden Indian airline industry savaged by rising fuel bills, dwindling cash and a stark lack of financing options.
“The company has incurred substantial losses and its net worth has been eroded,” Kingfisher said in a statement yesterday. “Steep depreciation of the Indian rupee coupled with consistently high crude oil prices has led to a challenging quarter”. The company is around a quarter-owned by banks and its top lender Bank of India has refused to add to loans.