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Kenya

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.

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