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Kenya

KQ half year loss drops to Sh3.9b, revenue up 3pc on increased passengers

Fleet costs and overheads are down by 2.2pc and 20.4pc respectively attributable to the fleet rationalization and restructuring in November 2017./FILE

NAIROBI, Kenya, Aug 29 – Kenya Airways has posted a half-year loss of Sh3.9 billion, a 30 percent improvement from the Sh5.7 the airline posted in the first half of 2017.

The airline’s revenue increased to Sh52.1 billion from Sh50 billion same period last year fueled by higher passenger numbers of 2.3 million, an increase of 6.6pc.

Cabin factor – the capacity utilization that measures the efficiency of an airline – increased by 2.8 points to 75.9 percent.

However, operating costs increased by 13.9pc due to increased pressure on global fuel prices.

Fleet costs and overheads are down by 2.2pc and 20.4pc respectively attributable to the fleet rationalization and restructuring in November 2017.

Kenya Airways Chairman Michael Joseph says that despite improve performance, fuel price volatility continues to be a major challenge for the airline.

“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,” says Joseph.

“Looking forward,” Joseph adds, “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.”

Meanwhile, Joseph says Cabinet has approved a proposal for KQ to manage JKIA as Private-Public Partnership with investments and control of the airport critical to KQ’s growth.

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