Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Customers of the two partners will enjoy a seamless travel experience through enhanced connectivity at JKIA, Nairobi and London Heathrow/FILE

Finance

KQ posts Sh8.6bn loss in half year performance despite 6.6pc increase in passenger traffic

The company had its losses stretched from Sh3.9 billion recorded in the same period last year, despite the airline’s total revenue increasing to Sh58.5 billion, a 12 per cent rise from Sh52.19 billion registered in the same period last year/FILE

NAIROBI, Kenya, 27 – Kenya Airways has expanded its loss before tax to Sh8.56 billion in its half year results.

The company had its losses stretched from Sh3.9 billion recorded in the same period last year, despite the airline’s total revenue increasing to Sh58.5 billion, a 12 per cent rise from Sh52.19 billion registered in the same period last year.

While announcing the company’s half year results, Chief Executive Officer Sebastian Mikosz said the national carrier had to spend more on the new routes, a trend which has affected its performance greatly.

“We invested in a lot of money on the new routes especially on operational costs since we are still working towards raising our profits from this,” he said.

Investments on the new routes such as New York, Mauritius, Libreville and Mogadishu delivered a 6.6 per cent increase in passenger numbers during the six months to Sh2.4 million.

This saw passenger revenues increase to Sh42 billion which is 5 per cent rise.

Operating costs increased by 5.3 per cent to hit Sh23.19 billion from Sh21.99 billion.

This was mainly brought about by KQ bringing back into service two Boeing 787 aircraft that had been sub-leased to Oman Air to support new routes.

“The two wide body aircraft were brought back to support operations in the new long long-haul routes and their costs are now fully borne by KQ, ” KQ Managing Director and CEO Mikosz added.

KQ as the airline also maintained low fuel costs that stood at Sh15.7 billion a marginal increase of 5.1 per cent from Sh14.9 billion registered during the same period last year.

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Your email address will not be published.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

Advertisement

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...

Headlines

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...

Headlines

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

Coronavirus

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

Coronavirus

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...

Coronavirus

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

Headlines

NAIROBI, Kenya, Mar 13 – Meet Kennedy Okaka, the CEO of PH Africa which manufacturers and distributes hand sanitizers. Okaka speaks to Capital Business...