The stock of Kingfisher Airlines, which tumbled to a fresh low of Rs 7.20 on Friday, will continue to plumb new lows as the company's loss escalated further. The debt-ridden firm's loss widened to Rs 651 crore for the quarter ended June 30 from Rs 264 crore a year ago.
Revenue also dropped to Rs 301 crore (Rs 1,907 crore). Parent company UB Group provided cash support of over Rs 750 crore to the airline to meet its cash flow requirements, the statement said. Since its launch in 2005, Kingfisher Airlines has never reported a profit. In contrast to this, both SpiceJet and Jet Airways have reported better performance.
Jet Airways posted a profit of Rs 25 crore in the April-June quarter while SpiceJet reported a Rs 56-crore profit on the back of improved capacity, cost-cutting, route rationalisation and sale and lease-back of aircrafts in the same period.