Private sector airline, Kingfisher Airlines has recorded its worst quarter loses ever in the fourth quarter as it loses touched 11.5 billion rupees compared to a loss of .6 billion rupees during the same quarter in the previous year.

The troubled airline operates in the India's aviation industry that is facing a combined debt of over $20 billion and $2 billion in annual losses. Increases in aviation fuel costs as well as high taxes have made it difficult for the companies to genera income.

Kingfisher was India's No. 2 airline until previous but is now the smallest carrier in India by market share. The shares of the company had fallen more than 80 per cent since the beginning of 2011 and as a result its market value has fallen to just under $100 million.

The loss of 11.5 billion rupees during the quarter till March 2012 is much higher than 4.1 billion rupees that were expected by analysts in a poll conducted by Reuters. Kingfisher Airline shares fell 6.3% in early trading on Thursday to a record low of 10.35 rupees.

The company said that high fuel prices, a weak rupee and an "unprecedented, tough operating environment" resulted in the high losses. Kingfisher also claimed that it would return to would return to normal services within 12 months.

"The company has a focused fleet re-induction plan and hopes to be back to full-scale operations in the next 12 months backed by a recapitalisation plan that the company is actively pursuing and confident of achieving," it said in a statement.