Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


KQ cuts half year loss by 20pc to Sh3.8Bn

However, the national carrier made flat revenue in the period under review slightly impacted by the election period/FILE

NAIROBI, Kenya, Nov 17 – Kenya Airways (KQ) has posted a Sh3.8 billion net loss for the six months to September, a 20.5 percent reduction of their losses same period last year of Sh4.78 billion.

Chief Executive Sebastian Mikodz attributes the improvement to decreased costs in the period as fleet costs were lower by 21.9 percent while overheads decreased by 8.9 percent.

However, the national carrier made flat revenue 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.

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.

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Your email address will not be published.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


More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...


NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...


NAIROBI, Kenya, Mar 25 Kenyans who will fail to pay their dues by April 1 will not be listed in the Credit Reference Bureau...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...