Kenya Airways Registers Sh6.1 Billion Loss

Kenya Airways has announced a Sh6.1 billion net loss for the nine month period running to December 2017, even as it continues to restructure its operations.

The airline's Chief Executive Officer Sebastian Mikosz blamed the loss on higher fuel costs and the negative impact of the extended electioneering period, which saw domestic travels reduce by close to 20 percent. During the period fuel costs increased by 14 percent.

“2018 will be a difficult year for us with stiff competition by other players in the industry and volatility in global oil prices,” Mr Mikosz said.

Mikosz is, however, upbeat that the planned launch of daily direct flights between Nairobi and New York in October, non-stop flights to Cape town, South Africa and direct flights to Mauritius will improve the airline's fortunes in the future.

He said the full financial impact of the US nonstop flights will be felt in 2019 and the airline expects a revenue increase of between 8 and 10 per cent from the plan. KQ plans to recall its Dreamliner from Oman Air to serve the Nairobi-New York route.