India's cash-strapped Kingfisher Airlines on Tuesday reported a doubling of its loss in the fiscal second quarter on higher fuel prices and operating costs, amid investor worries about its future. The company said it has suffered substantial losses and its net worth has been eroded.
Kingfisher has been asked by its creditors to raise $160 million in equity and the carrier is considering a proposal to sell real estate to help pave the way for a debt restructuring, a banker said on Monday.
The carrier's net loss in the quarter ended Sept. 30 rose to 4.69 billion rupees ($93 million) from 2.31 billion rupees in the year-ago period, the company said in a statement to the stock exchanges. Aircraft fuel expenses in the quarter rose 70 percent to 8.17 billion rupees, it said.
The carrier has become one of the main casualties of high fuel costs and a fierce price war between a handful of airlines which, between them, have ordered hundreds of aircraft for delivery over the next decade in an ambitious bet on the future.