Kingfisher Airline disappointing Q2 FY12 results have been announced in the midst of its mess on account of huge debt which needs bailout or restructuring of loans from various banks in India.
The debt-ridden airlines company owned by liquor baron Vijay Mallya posted a net loss of Rs.468.66 crore during the fiscal’s July-Sept quarter, which almost double the Rs.230.81 crore losses reported in the second quarter last year.
The Indian carrier posted unsustainable losses marred by higher fuel prices which depressed its operating profits. The airline major claimed that its fuel costs were higher by 71% during the quarter ended September 2011.
Kingfisher Airlines is one of the three biggest carriers in India that owes a debt of over Rs.7000 crore to a consortium of 13 bankers in India. Recently, the aviation company had to cancel hundreds of flights to cut its costs.