Kingfisher Airlines rose 2.51%, with the stock extending 3-day 34.45% rally triggered by the firm's statement that it continues to believe it will get recapitalized and get on a path of sustained profitability.
Kingfisher Airlines reported a net loss to Rs 650.79 crore in first quarter ended June 2012, higher than net loss of Rs 263.54 crore in first quarter ended June 2011. Net sales declined 84.2% to Rs 301.38 crore in first quarter ended June 2012 over June 2011.
Kingfisher Airlines said it has halved its operating losses to Rs 204 crore in June 2012, from Rs 429 crore in June 2011. This was achieved by reducing the level of operations in this high cost environment through a 20 aircraft 'Holding Operation', . Kingfisher Airlines said the impact of high fuel cost, high interest rate, depreciation of rupee and extraordinary expenses on account of return of aircraft to the lessors and the costs associated with non-operating aircraft, resulted in a net loss of Rs 651 crore in reporting period.
The UB Group provided cash support of over Rs 750 crore to the Kingfisher Airlines to meet its cash flow requirements, the company said in a statement. Kingfisher Airlines said it continues to believe it will get recapitalized and get on a path of sustained profitability. The airline is in discussions with several strategic and financial investors to bring fresh capital, Kingfisher Airlines said in a statement