Well it seems KingFisher is really suffering with losses by increasing 75% during to October to December period, and it’s raising new concerns about the carrier as an ongoing business.
Kingfisher (which has never made a profit in its existence) has lost 4.44bn rupees ($90m; £57m) Oct-Dec 2011, compared with 2.54bn rupees in Oct-Dec 2010.
Kingfisher states that the cost of fuel and a weak rupee has hurt its earnings.
Cashflow remains a major issue with the carrier with flights being cancelled, staff leaving and in some cases – staff not being paid.
Revenue is also down, with fuel going up.
All this is spelling worse news for the airline who are finding it increasingly difficult to raise fresh funds, with The State Bank of India, refusing to extend Kingfisher’s line of credit. Whilst it trying to raise investment cash, it is tied in terms of Indian Airline ownership rules which may change too late.
Kingfisher suffered another blow when it suspend its joining of the OneWorld alliance. These other blows could start making Kingfisher’s position untenable sooner rather than later…
