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Kenya Airways has recorded a loss of Sh4 billion in the first six months of 2018, representing a 30 percent improvement from the Sh5.7 billion posted in the same period the previous year.
The airline’s revenue grew to Sh52.1 billion in the half -year of 2018 from Sh50 billion in the same period in 2017.
Releasing the half-year results on Wednesday, Kenya Airways Chief Executive Officer Sebastian Mikosz said the increased revenue was as a result of more destinations, more cargo and more fleet.
"The lowest earnings before interest and taxes margins are in Africa, despite growth in GDP, the market is not growing. This is a signal that we need to analyze how the market is evolving," he said.
He added: "Some of the key challenges we are experiencing are fuel prices, economic growth variation, volatile exchange rates and repatriation of funds."
Mikosz said the airline carried 2.3 million passengers, attained a cabin factor of 75.9 per cent and on time performance of 82 per cent within the period.
Kenya Airways Chairman Michael Joseph mentioned fuel price volatility as one of the major challenges the airline is facing.
“The price per barrel has been on an upward trend since the beginning of this year closing at USD 74 as at 30 June 2018 representing an increase of 12pc in global fuel prices within the first half of the financial year,” said Joseph.
“Looking forward, the airline will continue to focus on an optimized network to create more connections through Nairobi and in turn increase efficiency in order to reduce overall costs, as we focus on return to profitability.”
Comments
That is how smart corrupt guys swindle money they play with figures put it in open pocket the difference..Kwisha..no devidents nut in reality some guys wameshiba
Believe it or not: KQ is headed for Chapter 11; then Disability benefits; then HOSPICE.
1-2011 British airways filled for bankruptcy
2-Qantas Australia airlines
Tranworld Airlines USA
4-Americans Airlines
5-Malaysia’s Airlines
6-Air Berlin
Just to name a few which has filled bankruptcy yaani ran out of cash so this Kenyans airways is not news at all but we hope they don’t file for bankruptcy.so as we talk negatives about our airways let’s keep in mind that others have done even worse n they belong to the biggest countries we praise n worship most of the time.
Very true its amazing how people are so negative about they country jameni brainwashed by this goringos it's just a setback but KQ will be fine let's give them credit for working hard to get certification
And imagine Kenya airway is going to manage the airport . blunder
Now: How is KQ going to afford the much touted DIRECT Flights to the US? Mind boggling!