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Kenya Airways plunges to Sh7.5 billion full year loss

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National carrier Kenya Airways (KQ) has sunk into a Ksh7.5 billion loss for the full year ended December 31, 2018 on increased costs as the company embarked on a flurry on investments aimed at lifting it from  negative territory, the investments are headlined by operation of the hyped New York Route.

The airline has also reported a Ksh683 million operating loss mostly on fuel price volatility and partially by operating the New York Route which has impacted negatively of the company’s books during the early stages.

KQ’s revenue jumped to Ksh114.2 billion during the period under review up from the Ksh80.8 billion posted in 2017.

Managing Director Sebastian Mikosz aware of the effect the news would have on the company’s stock at the Nairobi Securities Exchange (NSE) and the company’s image, during the release of the financial results at a Nairobi hotel on Tuesday said that the company is working with the Ksh6.4 billion loss for the 9 months ended 31, December 2017 figure as last year’s results are unaudited.

“These are very decent results. They are not explosively good results but we are heading in the right direction,” said the CEO “We made alot of investments last year and our losses are decreasing,”

Speaking at the same event KQ Chairperson Micheal Joseph said that the airline is waiting for the National Assembly Transport Committee to give its recommendations on the proposed takeover of the Jomo Kenyatta International Airport (JKIA) by the airline which has generated massive public debate.

“Of course the proposed concession has received very negative coverage which is erroneous. This was a plan that we had projected would be a step in the right direction. Closing the airline was an option but we did not want to go down that road,” said the former Safaricom CEO.

{Read: Why Kenya Airways might lose market share to regional competitors}

He said that the matter is out of KQ’s hands and parliament will have the final say on the proposal.

{See also: Bob Collymore not leaving Safaricom – for now}

The Kenya Airports Authority (KAA) has expressed its reservations over the proposal even as analysts continue to question how a loss making entity like Kenya Airways will takeover a profit generating entity.

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