subject: What Affected Kingfisher Airlines Stocks [print this page] A man that acquired Whyte & MacKay as he was not permitted to brew scotch whiskey outside of Scotland, bought his own Formula 1 and IPL teams, Force India and Royal Challengers Bangalore respectively, is known for his lavish lifestyle. He owns yachts, private jets, beach villas at exotic locations to entire islands. But he seems to be doing something right to have cut losses in a year which saw the liabilities side of the Jet Airways balance sheet go up.
India's second biggest airline by traffic is KingfisherAirlines. Kingfisher Airlines reported a net loss of Rs. 1,647.22 towards the end of May 2010. Looking at their figures of Rs. 2,139.65 for the previous year, this can be considered quite an improvement.
Officials at the airline reported a drop in sales by 3.26%. This did not affect the company at all as they managed to reduce losses by a staggering 23.1%, showing India's brew master is doing an amazing job at handling the airline.
The company reduced operating losses by almost Rs. 1000 crore in 2010 along with a rise in income by almost 300% from Rs. 63.60 crore in 2009 to Rs. 203.12 in year 2010. Airline officials have also stated that from the current losses, Rs. 400 crore which includes premature termination of aircraft lease, foreign exchange losses and general clean up after the integration of Air Deccan are one time losses that will not be incurred again. Stocks of Kingfisher Airlines rose from a 52 week low of Rs. 39.20 on the 26th of May, 2010 to Rs. 44.85 on the 9th of June, 2010.
Jet Airways on the other hand, India's largest passenger air carrier increased its losses by over 15% to Rs. 467.64 crore in 2010.
