FEATURED STORY

KQ recovery takes off as losses shrink

Share
A Kenya Airways plane preparing to take off from the runway. Kenya Airways has reported a Ksh14.3 billion loss for the half year ended June, 2020.
Share

Kenya Airways (KQ) has posted a Ksh3.8 billion net loss for the six months to September, a 20.5 percent drop from the same period last year when it recorded a Ksh4.78 billion loss.

Chief Executive Sebastian Mikodz attributes the improvement to decreased costs as fleet costs were lower by 21.9 percent while overheads decreased by 8.9 percent. However, the national carrier’s revenues remained flat in the period under review slightly impacted by the election period.

“During the period we have seen our business decline by 52 percent, November is flat but the bookings for December have gone up by 6 percent compared to same period last year. We will see the full; impact in our full year announcement,” Mikodz said.

Cabin factor went up by 5.4 percent to 76.9 percent, passenger numbers up by 3.3 percent to 2.3 million while Intra Africa traffic increased by 6.7 percent. Operating profit grew by 52 percent to Sh1.4 billion while total asset hit Sh142 billion down two billion compared to 2016.

ALSO READ: Trading in KQ shares suspended

Focus over the next few months is to grow a profitable network, winning in key markets and improving revenue structure. “Launching the Kenya Airways New York route is a strategic initiative that will require significant investment and will be the longest flight in our network,” Mikodz said.

The firm has just completed its capital optimization plan that has seen both banks and the government turn their debt into equity reducing the airlines’ debt by 36 percent.

“The journey to turnaround KQ will be over six to 12 months, and there is a strong management team now in place to drive that ambition,” said KQ Chairman Michael Joseph.

SEE: Things you should know before insuring your car

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Dr Peter Ndegwa Safaricom Group Plc CEO
FEATURED STORY

Safaricom Secures US$138m from Standard Bank for Its Ethiopian Subsidiary

Safaricom Plc, a leading telecommunications firm, has sealed a $138m funding deal...

NSE to benefit from US Fed Reserve Rate Cut
BUSINESSFEATURED STORYMARKETSSTOCKS

NSE to Benefit from Federal Reserve Rate Cut, Renewed Foreign Investor Interest

NSE (Nairobi Securities Exchange) is expected to benefit from a recent cut...

Uchumi Supermarket is currently insolvent
BUSINESSSTOCKS

Uchumi Shares: Why Investors Are Glued to the Counter

Uchumi Supermarket Limited Shares have been on a rally for the past...

Kenya Airways Chief Executive Allan Kilavuka
BUSINESS

Kenya Airways Issues Profit Warning On Lack of Aircraft Spares

Kenya Airways has issued a profit alert, warning that its 2025 earnings...