KINGFISHER LOSSES INCREASE FOR THE QUARTER

Kingfisher Airlines has reported a 15% increase year-on-year loss of 263.54 crore for the April-June quarter. High fuel costs, which rose 40%, have completely offset the benefit the airline received from re-structuring its debt earlier this year. Moreover, a new accounting method that allows costs on major repairs and maintenance to be amortised over the incremental life of the asset was introduced by the airline, if it did not have this, the airline’s losses would have been Rs. 26.23 crore higher. Sales saw an improvement of 15% at Rs 1,911 crore led by a 10% increase in its traffic domestically.