KFA continues to improve operations with another quarter of EBITDA profit
10-Aug-2011 Kingfisher continues to improve operations with another quarter of EBITDA profit. The airline was able to achieve these results despite a 40% increase in the price of Aviation Turbine Fuel (ATF).
Kingfisher Airlines' total revenue for Q1 FY12 was Rs. 1,911 crore which is a 15% improvement over the same quarter last year. Increase in capacity, higher load factors, and improvement in yield contributed to the revenue growth.
The momentum in Indian aviation industry has continued with a strong demand growth of 15% in Q1 FY12. Even though the capacity growth at 19% slightly outpaced the demand growth, Kingfisher effectively capitalized on its strengths to achieve a 4 percentage point increase in domestic load factor. In the same period, industry load factors experienced a decline of 2 percentage points.
For the quarter ended Q1 FY12, EBITDAR was Rs. 252 crore vs. Rs. 340 crore in FY10. EBITDAR margin for the year was at 13% vs. last year at 20%. This profitability was achieved despite additional fuel cost burden of Rs. 260 crore.
Kingfisher Airlines reported an operating EBITDA profit of Rs. 4.6 crore in Q1 FY12 compared to a profit of Rs. 99 crore in Q1 FY11. The overall EBITDA margin for the quarter was 0.2%. Growing maturity of international routes was a major contributor to the improvement as the EBITDA loss on international operations reduced to Rs. 40 crore in Q1 FY12.
Net loss as a percentage of total revenue stood at 14% in Q1 FY12. The benefits of debt restructuring and improved operating performance were offset by the rise in fuel price. Domestic operations saw a Revenue per Available Seat Kilometer (RASK) improvement of 6% whereas the International RASK improved by 25%. EBITDA CASK (Cost per Available Seat Kilometer) increased by 16%. Excluding fuel, the EBITDA CASK increased by only 3%.
During the quarter, Kingfisher Airlines' frequent flier program "King Club" won several accolades at the frequent traveler award ceremony in the US. In June at the Paris Air Show, Kingfisher was rated the Best Airline in India and Central Asia by Skytrax. Kingfisher remains India's most awarded airline.
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