KQ posts net loss of Ksh 4.8B

By Caroline Njenga

National Carrier Kenya Airways has posted a 4.8 billion shillings half year loss, down from the 12 billion shillings loss the airline posted in the same period last year.

Kenya Airways has attributed the reduction in the loss to lower operating costs as well as an increase in passenger numbers.

This is despite Kenya Airways selling key assets such as air crafts, a prime piece of land in Nairobi and a landing spot in London.

The National Carrier has been in the red in recent years, having posted a full year loss of 26.2 billion shillings for the year ending March 2016.

Over the last one year, the airline has been implementing a turnaround strategy dubbed Operation Pride which is expected to help the airline stay footed on the recovery path.

To this end, KQ made a net loss of 4.8 billion shillings over the last six months, a 60 percent reduction from the 12 billion shillings loss the airline posted in the same period last year.

This was fueled by increased passenger numbers and lower operating costs. 

KQ remained in the red despite selling key assets such as air crafts, a prime piece of land in Nairobi and a landing spot in London.

This is something pilots have been vocal about, calling for an overhaul of the management team who they accused of mismanaging the airline.

KQ CEO Mbuvi Ngunze says the airline’s main focus is restructuring its balance sheet and creating liquidity to place it on a stronger long-term financial and operational footing.

The 4.8 billion shillings half year loss means shareholders registered a loss per share of three shillings and 20 cents, down from a loss of seven shillings and 99 cents per share during a similar period last year.

The appointment of former Safaricom CEO Michael Joseph to chair the airline’s board has injected hope among stakeholders who expect improved performance going forward and a quick flight back to profit making.

KQ plans to introduce 30 new frequencies on unspecified routes across its network this year.

  

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